Coordination And Control Of Two-Stage Supply Chain

The world economy has displayed obvious integrative characteristic nowadays. Enterprises are facing the global competition now. They can not cope with such intense competition if they just rely on their own strength. So a new kind of competition, competition between the supply chains, has substituted the unitary traditional enterprise competition. The supply chain structure which contains a supplier and a number of retailers is the most familiar in competition. So this article takes the two-level supply chain that contains a supplier and several retailers as the research object. From the angle of stock, it introduces the conception of the probability of being out of stock and the probability of being full of stock and researches the problem of harmonization and optimization of inventory. And it lays foundations for the research to multi-level supply chain. In view of the customer demand with the characteristics of great uncertainty and diversity in today's business competition, this article takes research from the two aspects of that the demand interval obeying exponential distribution and the demand obeying phase distribution.This article takes the supply chain model that contains a supplier and several retailers to be a Markov process by using stochastic process theory. It analyzes the transition relationship of all the states of the supply chain by using the queuing theory and clarifies the internal structure of the matrix which describes the transitions among the states of the supplier and three retailers. So it clears the obstacles for seeking the probability of the steady state of all the states of the system. It also gives the formula for calculating the probability of being out of stock and being full of stock. On the basis of this, this article gives the ideas of optimization for the supply chain. And it gives the basis of quantitative analysis for harmonization and control of the supply chain and optimization and combination of the supply chain. It takes quantitative analysis to the supply chain model by simulation example and gets the sensitivity of the probability of being out of stock and being full of stock to part of the supply chain parameters. It also gives the strategy of optimizing the supply chain. So it further confirms that the supply chain optimization method introduced in this paper is feasible.