Researches On How The Partnership Of The Two Parties About JIT Purchasing And Supplying Affects Profits Under The Supply Chain Circumstance

With the development of social productive forces, the specification of social labor division, and internationalization of manufacturing, enterprises are increasingly putting so much attention on their core competitiveness, while some non-core businesses are outsourced. Thereby, purchasing plays a vital role in the development of a certain enterprise. The traditional purchasing arrangement, so far, has not met the need of the enterprise's development in the recent Supply Chain Circumstance. Therefore, a new purchasing arrangement is needed to satisfy JIT (i.e. Just-in-time) producing. Born in such a circumstance, JIT purchasing is drawing more and more attention. However, there exists a bottle-neck problem that it's impossible for a majority of the two parties about supplying and purchasing to establish a valid, long-term strategic partnership, and that's the reason why JIT purchasing can not be implemented availably in practice. This paper will begin with the strategic partnership between the two parties to make researches on the beneficial influence of it.First of all, the exordium mainly introduces the researching background, proposals and significance; focuses on the researching course on JIT purchasing from home and abroad to make a clear direction in accordance with its status quo and downside. The second chapter looks at the history of the origin and development of the Supply Chain Management as well as the theory of JIT. Meanwhile, a conclusion about the connotation, characteristics and advantages of JIT purchasing is made on the basis of an analysis of the ties between JIT purchasing and JIT philosophy, under the Supply Chain Circumstance. Moreover, it makes a comparison between JIT purchasing and traditional purchasing from various angles, and then probes into the economical and non-economical conditions about the effective implementation of JIT purchasing, as well as ensures the effective implementation about bottle-neck of JIT purchasing.Secondly, in terms of one of the JIT purchasing bottle-neck conditions in the second chapter, chapter three makes deep researches on the strategic partnership between the two parties. What's more, drawing successful researches in the essence about how to administrate the partnership under the supply chain at home and abroad, it explores the partnership-administrating essence between the two parties, and analyses the feature of Game Theory that this kind of partnership in itself possesses. It also analyses the driving force to form and maintain the partnership between the two parties of JIT purchasing and supplying - overall profit increase of the partners.Finally, on the basis of the above two chapters, chapter four analyses how the cooperation and non-cooperation relations affect profit to the two parties through establishing mathematical models. First, applying to the principal and subordinate measure theory in Game Theory, it analyses and makes a comparison of the non-cooperating situation between the two parties, and of the different profit situations when led by the supplying party and by the purchasing party of JIT purchasing respectively. Then it analyses the profit with cooperation through Pareto Theory. Eventually, by the comparison of the different results among the above three situations, a concrete expression proves that the models are correctSincerely hope that the analysis and researches of this paper can provide some valuable references and advice to enterprises, which have adopted or are going to adopt JIT purchasing.