The Research On Supply Chain Coordination With A Leading Retailer Under Demand Uncertainty

With the development of economy,the market transfer from seller's market to buyer's market. As the direct respondent to the market information,retailers replaced the traditional manufacturer in supply chain and became the core enterprise gradually.Because of the information asymmetry among members in supply chain,the core enterprise is influencing the others on the decision making in supply chain.Meanwhile,because the members in the supply chain who are at different interest groups will make efforts to maximize their self-interest, which are in conflict with the whole supply chain profit.So,a certain mechanism is needed for the coordination of the whole supply chain so as to raise the overall performance of the supply chain.This paper studies the coordination problem of a two-stage retailer-leading supply chain composed of one manufacturer and one retailer under the condition of demand uncertainty.Firstly,we build the expected return model of all members under the normal contract, using Stackelberg game to analyze the values of various decision variables that maximize the expected return of the retailers and using Matlab to numerical simulation,which analyze the values of various decision variables and the optimal solution of all members' return with different values of price-elasticity index of(expected) demand.Secondly,this paper builds the expected return model of all members under profit-sharing contract and brings in the repurchase price.By analyzing and proving,we figure out that the overall expected returns of the supply chain and the returns of both members under this contract are lager than the return under normal contract,which shows that the profit-sharing contract can well coordinate this supply chain.