Analysis Of Extended Newsboy Problem Under Stochastic Demand

The studied content is come from National Natural Science Foundation Project (grant number: 70471045).Supply Chain Management refers to the activity and procedure of planning, coordinating, controlling and optimizing aiming to the whole supply chain system. With the global economic speeding up, the supply chain management becomes a competition scheme for enterprise, considering the dependence between them grows and the customer's demand personalized. Therefore, the end for supply chain management lies in how to cooperate the activities of the players in the chain through effective stimulation. Accompanied with inefficient communication between supply chain members, different expectant profit leads low overall efficiency of supply chain. The main one of the factors that makes supply chain uncoordination is asymmetric information. Therefore, how to coordinate the supply chain to make the profit of supply chain becomes the most important role of supply chain management. The ordering and pricing of the supply chain is the main content in this paper.In this paper, we assume that there is one supplier and one buyer in a two echelon supply chain. The sale period is short and has no Pre-Sales time. The paper has three parts:In the first part, the supply chain have shortage cost, supplier may afford return policy and quantity discount. The analysis of ordering with these four models: independence model and supplier affords return policy and quantity discount model under asymmetric information, centralized model and supplier affords return policy and quantity discount model under information sharing. The demand is stochastic.In the second part, the supply chain has shortage cost, supplier may afford return policy and quantity discount. The analysis of ordering with these four models: independence model and supplier affords return policy and quantity discount model under asymmetric information, centralized model and supplier affords return policy and quantity discount model under information sharing. The demand is stochastic and based on price.In the third part, the buyer can order in a second time when the demand exceeds the first order quantity, and the supplier has some deposited productions. Supplier affords return policy and the market has shortage cost. The analysis of ordering and the supplier stores quantity in the three models: independence model, centralized model, revenue share model. The demand is stochastic.