Distribution Model Of Cooperation Profit In Supply Chain

As the development of information technology and economic globalization, supply chain management is becoming the hot spot of practices and theories research, which is characterized by core-competencies-focused and external-resources-used. However, the failure rate of supply chain management practice is high. Though there are several reasons, the unscientific and irrational distribution model of cooperation profit is one of the important factors. In theory, the domestic and foreign scholars focus on certain aspects of implement of supply chain management. Researches on profit distribution are not enough.This paper takes the distribution model of cooperative profit in the supply chain as the main object. Based on the introduction of related theory, it analyzes the determination of business scale and the evolution of business organizations, which is help with the transaction cost model. Simplify supply. Solve and compare the profit function to get the creation process and the nature of supply chain management. Then, the subject and principles of profit distribution are got. Finally, based on the decision factors, the corresponding interests of single factor and the allocation process, the distribution model is achieved.Part of reasons and conditions of Supply chain management: First, transaction cost theory is given to determine the boundary of the model business, and thus to explain the evolution of the organization. Then, analyze the affect of information technology and market conditions on the market transaction cost and internal cost. Further, the change in firm size and the emergence of supply chain management are studied.Part of creation process of cooperation profit: simplify supply chain, assuming that only one manufacturer, one retailer and consumers. Through the solution and comparison of maximization of profit function in supply chain and non-supply chain management model to know the creation of principles and process of cooperation profit.Part of profit distribution principles system: the core business is the subject of profit distribution. Conditions and principles the distribution should be based on are studied by Game Theory and the fair principle is formulated Part of profit distribution model: three decision factors of cooperation profit are determined. Those are amount of input resources, risk degree and level of performance. By the conversion of equitable formula, three received benefits corresponding to each single-factor, resource benefits, risk benefits and performance benefits are got. Based on twice distribution strategy, the distribution model of cooperative benefit is finally determined.Main conclusions of the paper are: Information technology and market competition are the objective conditions of supply chain management. Supply chain management is a proper organizational form adapt to certain circumstances. It does not always mean the best form. Successful supply chain management can bring the cooperation profit and realize the win-win situation. Profit distribution is essential to the growth of cooperation. Scientific distribution requires three conditions: participation condition, fair condition and stability condition. Equity principle is the nature of the profit distribution should be based on. The profit distribution should consider three elements: amount of input resources, risk degree and level of performance. It is completed by twice distribution strategy.