Study On Coordination Model Of A Single-supplier And Multi-retailer Supply Chain

The thinking of supply chain management has increasingly been appreciated and applied with the development of economy and information technology, especially the development of diversification and individuation of customer demand. Supply chain management is an integrated idea and method. And it, from the view of system or global point, plans all links involved in the supply chain from suppliers to customers. It effectively plans, organizes, coordinates and controls the whole supply chain and ensures the system to optimize as a whole. However, the supply chain is a network with a number of different enterprises. And many factors, such as different goals or information asymmetry between enterprises etc., make the supply chain coordination difficult in time and space, resulting in the whole supply chain in a state of maladjustment. One feasible option to alter this state is to use various contracts to coordinate, and maximize the entire profit of the supply chain.The coordination models in the existing literatures are mostly about the supply chain with a single supplier and a single retailer. But, in reality, one supplier often provides products for many retailers belonging to different entities. Obviously, it will be practically significant to study a one-supplier and multi-retailer supply chain. This paper exactly investigates a one-supplier and multi-retailer supply chain, and discusses how to achieve coordination of a supply chain with contracts. The paper is divided into four parts. The first part introduces the backgrounds and significances of supply chain management modes and coordination based on the characteristics of modern competition and challenges facing with enterprises. The second part illustrates the related knowledge about supply chain coordination and summarizes the recent domestic and foreign researches on contracts. The third part analyzes a single supplier and multi-retailer and adopts price discount and price subsidy as coordination strategies respectively, depending on the difference of transportation cost undertaker, to realize win-to-win in the supply chain. Numerical examples are conducted at the end of this part, which evaluate the feasibility and the validity of the proposed coordination model. Finally, the paper takes the order processing cost of the supplier as the model's research point and adopts delay payment to coordinate the one-supplier and multi-retailer supply chain. Also, the corresponding mathematical model and numerical examples are conducted.