Study On Supply Chain Contract Based On Retailer's Delivery Time Guarantee

Supply chain is a dynamic alliance involving multiple corporations which all have their own behavior purposes. In order to reflect the buying pattern between the upstream and downstream members in the supply chain, and to avoid double marginalization, the advent of researches on supply contract has become a necessity. Coordination of the retailers promotion is a major filed of supply chain contract. Based on the time-based competition background, the problem of the delivery time guarantee by the retailer and how to coordinate it by supply chain contract is researched in this article.The decision-making model of delivery time guarantee by the retailer under the supply chain environment is researched based on the model of an individual firm. From the traditional point of view, the retailer should make the commitment about delivery time and paid for the compensation when deliveries are late. But through research, this form of co-operation will encourage retailers to choose a decision that can't optimize the overall supply chain for the lack of incentive. After analyzing of relevant factors, it was proved that under decentralized decision condition, the retailer's decision can't coordinate the supply chain with the whole price model. Further, a supply chain contract model was developed to solve this problem. This study provides an efficiency tool of delivery time guarantee for the enterprises in supply chain. Through the upstream suppliers making some compensation for delivery delays caused by the retailers, the supply chain's performance will be improved and both members will benefit. Finally, we extend this modle to the background of random demand. This study provides an efficiency tool of delivery time guarantee for the supply chain enterprises.