Research On Supply Chain Coordination Based On Competitive Of Price And Service

The consumption of "Products Services" has become increasingly prominent; the competion between enterprises has been extended from the pure price competition to the competition of price and quality of service. Through the combination of products and services, we can really understand the real needs of the end users, and produce the optimal number of products. On the one hand, it reduces the stock to prevent the waste of resources; on the other hand, it reduces the burden on the environment when consumer use. In the leading companies of the modern industries, we can find the management concept of "Products Services" at any time. Therefore, it is of theoretical and practical significance to study the supply chain structure model with the competition of price and quality of service.Based on the pertinent literature, this paper takes the second-order supply chain with the competition of price and quality of service as an object of study, and designs the centralized decision-making, decentralized decision-making model. Then the author further analyzes the optimal decision and the optimal profits, and introduces the revenue sharing and cost allocation contract and proved its efficiency. The main contents of this paper are as follows: Firstly, it describes the background and significance of the research, then it introduces the current situation of the supply chain contracts and supply chain involved in quality of service, and then there is a detailed explanation for the revenue sharing contract used in this paper; Secondly, it introduces the impact of price and quality of service on linear demand, then it designs the second-order supply chain model based on the competition of price, quality of service, and both of them. And then, it analyzes the optimal decision and the optimal profits in the centralized decision-making, decentralized decision-making model, and then makes a comparison between the two models.The results of this paper shows:Under this research, the centralized decision-making is better than the decentralized decision-making, either in the interests of consumers and the utilization rate of resources, or in the performance of supply chain system; The simple revenue sharing contract of the second-order supply chain with the competition of price can not achieve coordination, but can let the second-order supply chain with the competition of quality of service achieve coordination. However, it has some limitation in practical use; the revenue sharing and cost allocation contract can keep the supply chain coordinate, and with excellent results.