Study On The Relationship Between Manufactures And Suppliers Under The Dynamical Market Environment

With increasing competition, the relationship between manufacturers and suppliers management is becoming more and more important. Changeable market environment makes the relationship management more complex, even showing blindness. The complexity of the external environment has also increased the cost and risk of management. In this paper, I have studied how does the cooperation relationship change, when the market environment change.Firstly, It analyze the internal and external factors which affect the supplier relationship. The internal factors include the cooperation time and investment. The external factors affect the ability of the negotiations by change the market position and price. And then, the income and cost faced by both manufacturers and suppliers have been analyzed.Secondly, this article founded the model by use of differential games theories and gave an answer by optimality conditions. The answer is the equilibrium solution under the dynamical market environment. The best payments at the beginning of cooperation and during the cooperation have being got. The cooperation relationship level table during the future years has been made.