Supply Chain Coordination With Quantity Under Exchange Rate Fluctuation

The supply chain system is an open complex system, which is composed of different economic entities. The supply chain enterprises all have their different optimization objectives and private information, these optimization goals are often associated with the overall objective of supply chain systems in conflict, in order to optimize the overall supply chain profit, to conduct supply chain management to coordinate the supply chain. Supply chain contract is to achieve an effective supply chain coordination mechanisms, and quantity discounts are a common mode of supply chain contract.This article first reviews at home on the quantity discounts and cross-border supply chains quantity discounts on already existing research; and then the basic theory of the supply chain have been summarized, analyzed the definition of supply chain coordination, as well as the need for coordination and introduced the coordination of several major mode.In summing up, based on correlation theory, first of all to a single supplier and single retailer, the formation of transnational supply chain system as the research object, consider the case of a fixed demand, the introduction of exchange rates, quantity discounts before and after the establishment of supplier and retailer profit function analysis discount programs feasible and necessary condition that the two sides were greater than the discounted profit of the profit before discounts to achieve Pareto optimal. On this basis, to suppliers after the discounted price that profit maximization as the objective function in order to achieve Pareto optimal solution for the condition of the final simulation to discuss the different exchange rate case, the impact of individual parameter values. Analysis obtained:the supplier offers quantity discounts contract, the profits of suppliers and retailers has increased in the profits realized the Pareto optimal; with the manufacturers of the country's currency appreciation, that is, the increase of e the supplier's profits and retailer's profits have declined.On this basis of further extended to a single supplier and multiple retailers, composed of cross-border supply chain systems, demand and price elasticity in the interest of suppliers to maximize profits after the discounted price that the objective function in order to achieve Pareto excellent condition to solve the final simulation to discuss the different exchange rate case, the impact of individual parameter values. Analysis obtained:Exchange rate changes will the profits of retailers and suppliers have a huge impact, so suppliers must be considered when making decisions to exchange rate movements.This paper studies the exchange rate on the profits of suppliers and retailers, the impact of, for multinational corporations engaged in international trade provides a theoretical guidance, with more extensive practical value.