Study On The Inventory Control Model For Two-tier Supply Chain Based On Price Discounts

Market competition is no longer a competition between a single enterprise but competition among the supply chain, which requires the supply chain in close cooperation between members of the supply chain in pursuit of the greatest competitive advantage. Thus, to achieve effective coordination between each stages of supply chain is a current managerial and an important issue. This paper studies how to develop discount pricing policies to achieve effective coordination in a supply chain with price sensitive demand.The paper studies inventory problem under the two-tier SCM condition, which introduces the research background and significance mainly. It combines with research at home and abroad, and puts forward the main research contents and methods. The paper gives the reviews on the supply chain, the SCM's typical methods and the concept of inventory control, system, content and objectives, which analyzes the function of inventory control and importance.Then, the paper introduces the principles of inventory control, common inventory model, and analyzes the supply chain's inventory cost the paper involved. On the condition of the supplier's shortage , instant delivery and the vendors'shortage, delayed delivery, the paper analyzes the inventory model of the vendors and suppliers in the case of non-price discounts and price discounts detaily, and gives price discounts with the best overall supply chain inventory model. Then, the paper combines with an example of comparison of price discount and non-price discount, analyzing the vendors, the supplier and overall's profit and using game analysis to analyze the distribution of profits. Finally we can get inspiration from the management.At last all achievements of the thesis are summed up and some future directions for research are suggested.