Research On Global Supply Chain Quantity Discount Model

In the economic globalization, the business scope of development has been extended gradually. Facing the intense market competition, the users'demand uncertainty, personalized increasing, the rapid development of high technology, the product life cycle shortens in the complex economic environment. More and more multinational enterprises abandon the traditional "vertical integration" management mode, switch to "crosswise integration" management mode:Global supply chain. International chain is mainly studied in the international market environment and established in supply chain design layout in meeting the market demand, under the premise of the planning period of different areas and different manufacturers of raw materials procurement, production and distribution of products such tactics, sharing of the whole supply chain efficiency to achieve the optimal. Therefore, enterprises should not only consider the internal management mechanism, but also to take into account the resources of other countries and environmental uncertainty, in order to achieve complementarity of resources, and ultimately win.This article first reviews related literature on global supply chain management and quantity discount, on the basis of how to create a quantity discount model under global supply chain, considering the environments are:deterministic demand, uncertainty demand and price dependent demand. In each environment, first analyses traditional model from simple "trade" relationship to the entire supply chain model and the discount should satisfy the interval, further analyses exchange rate and tariff rate how to change the vendors and retailers'profits.Conclusion that:In the deterministic demand, suppliers and retailers'profits have been significantly improved after suppliers provide retailers quantity discount, thereby increasing the efficiency of the entire supply chain. As exchange rate increasing, the retailers'optimal order quantity increase, and the profits of suppliers and retailers increase. As tariff rate increasing, the retailer's optimal order quantity reduces, and the profits of suppliers and retailers also will be reduced.In uncertain demand, the profits of suppliers and retailers significantly increase after the supplier provide a reasonable quantity discounts to retailers, and then the efficiency of the whole supply chain has also been improved. As exchange rate increasing, the profits of suppliers and retailers increase. As tariff rate increasing, the suppliers and retailers'profits will be reduced.In the price dependent on demand, after the supplier provide a reasonable quantity discounts to retailers, the retailers reduce the market price, and the optimal order quantities increase, and the profits of suppliers and retailers have been significantly improved than before discount. As exchange rate increasing, the retailers'products market prices will be reduced, the optimal order quantities increasing, and the profits of suppliers and retailers increase. As tariff rate increasing, the retailers'market price increases, the optimal order quantities decrease, and the profits of suppliers and retailers are also reduced accordingly.