Study On Supply Chain Coordination With An Inventory-level-dependent Demand Rate

The topic selection comes from the phD. Programs Foundation of Ministry of Education of China(grant number:20060359007):supply chain coordination with an inventory-level-dependent demand rate.With the supply chain management carrying into extensively, more and more research developed on inventory control theory and the supply chain coordination. As the hot spot of supply management theory research, the theory and methods of supply chain contract and inventory control are highly concerned by many enterprises; Simultaneously, every member in the supply chain pursue maximization of their individual expected profits, which lead to double marginalization. Therefore, studying the problems of both inventory control and supply chain coordination has practical significance.During recent years, the research on inventory control models and supply chain coordination that has made much more progress is based on constant demand or price-sensitive demand or random demand. But few is based on inventory-level- dependent demand. Furthermore, concerning of the economical effects and the fairness of the distribution of benefits, many enterprise's administrators, when in the design of supply chain contract, not only will consider the supply chain efficiency , but also to consider the reasonableness of the distribution of proceeds. In allusion to supply chain coordination with an inventory-level-dependent demand rate, the details are given as follows:1. Study on supply chain coordination with an inventory-level-dependent demand rate, analysis the benefits of enterprise and supply chain performance in the model of decentralize chain and centralize chain, to discuss how to make optimal supply chain performance; First, change form a tow-stage supply chain component of a retailer and a manufacturer, we adopt"Price Plus Inventory-Subsidy Contract"to coordinate supply chain, obtain a coordination strategy; Contemporary we adopt Revenue Sharing Contract to coordinate supply chain, obtain a coordination strategy. And calculate, when the supply chain achieve to optimal performance, the contract parameter value and range. afterwards expand the model into three-stage supply chain component of a retailer, a distributor and a manufacturer.2. We compare the revenue sharing-contract's coordination strategy with"price plus inventory-subsidy"contract's coordination strategy, obtain which contract is used to coordinate supply chain under what conditions. Simultaneously , we propose revenue-sharing contract is more flexible and more equitable in distribution of supply chain's benefits. when coordinate this supply chain, and give the corresponding numerical example to better illustrate the above conclusions.Our research not only enriches the content of supply chain coordination with an inventory-level-dependent demand rate, but also provide a theoretical basis to practical business decision-makers in supply chain coordination.