Supply Chain Channel Coordination Mechanism Based On The Common Replenishment Cycle Policy

With internationalization of production and consumption, to cope with increasing intensive competition,the enterprises pay more attention to their core competence and actively outsource their non-core businesses.They hope to become competitive through supply chain partners's coordination. As a result, the competition among enterprises develops into the one among the supply chains.The problem how to improve supply chain's competence is to be solved.Though information technology can make information be shared fully among enterprises ,the problem how to improve the whole supply chain performance cann't be radically solved only by IT.Therefore,the enterprises must reform their managemental ideas and styles.Because many literatures about supply chain coordination at home mainly rest on information-sharing ,combination of price with storage will be used to explore it in the paper, common replenishment epoch strategy consisting price discounts and common replenishment epoches is introduced,the problem whether two-win can be reached by conducting this strategy from changeable demand respect is discussed.Consequently, the paper proposes all kinds of hypothesis about bargain between buyer and seller and establishes profit optimization models about the manufacter,the wholesalers and the whole system.In addition,the modeling algorithm by using Matalab software is given considering the particularity of the model established.Finally,the reasonableness of the established models is examined by a concrete exmple and the effects of relative parameters are discussed in the paper. The result shows that profit Pareto improvement between the vendor and the buyers can be realized through common replenishment epoch strategy .