A Study On Supply Chain Contract Coordination Based On Demand

With the extensiveuse of economic globalization and the JIT in the enterprise, the enterprises contact each other more closely, and the supply chain is developing towards the complex network structure, becoming more and more important. However, the more complex and higher status the supply chain is, the bigger influence caused by unusual tache will happen. In recent years, the incidents occur frequently in the world, under this background, the incidents will cause varying degrees of positive or negative impacts on the well-balanced supply chain.The studies of supply chain coordination based on the demand side have mostly not considered the risk attitude of the members of supply chain, only considering the emergencies caused by the single factor or two-factor changes, and only considered the situation of the full market mechanism. However,in the actual situation, the issues always are more complex. This paper studies how to coordinate the supply chain under the premise of the exponential demand price function when generally considered market size, product costs, price sensitivity coefficient of the three factors at the same time change. In the same time, if the total supply chain profit is negative, the government should be how to get involved in the supply chain to ensure the production and supply of products. Then, this paper further studies the supply chain coordination issues consist of a supplier and a retailer when considering the risk attitude of the members, also studies in the random demand case, how to quantify the risk attitude and revenue sharing contract to coordinate the supply chain.This paper is devided into 4 parts including 5 chapters, the main content are summaries as follow:PartⅠincludes the first chapter and the second chapter, figuring out the issues and summarizing existing theoretical research. The first chapter is the introduction of the whole paper and the second chapter is literature review. Chapter one introduces the background and significance of the paper, the main research idea, the framework and the innovation. Chapter two reviews and summarizes the existing literature from four aspects including unexpected supply chain needs, supply chain coordination, supply chain contract management, supply chain coordination in demand-side change. Meanwhile, for the second question in this paper, four aspects including of the implications of supply chain risk, supply chain risk cases, value at risk theory(VaR) and revenue sharing contract have been summarized, building a solid theoretical basis for the further study.PartⅡis chapter three, which is a model of the first strategy, specifically studies the coordination strategy without considering the members'attitude under demand change. At first, a basic hypothesis is built, assuming that a supply chain is made up of one supplier and one retailer, the relationship between demand and price is exponential function, emergencies resulting in three factors change including market size, product cost and price sensitivity coefficient. Then a basic model involved with no change in demand is constructed, getting the optimal order quantity, optimal retail price and the optimal supply chain profits. And then the coordination models in a centralized decision-making supply chain and a decentralized decision-making supply chain under demand change are built. For the centralized decision-making supply chain, a optimal strategy is achieved; For the decentralized decision-making supply chain, if the profit is positive, the paper studies the actions of the supplier in the active position, including all quantity discounts contract and capacity constraints of linear pricing contract, getting perfct supply chain coordination strategy; if the profit is negative, a mechanism of government subsidies is considered, a conclusion of the situation and the amount of subsidies are preliminarily studied.PartⅢis chapter four, which is a model of the second strategy, specifically studies the coordination strategy considering the members'risk attitude under stochastic demand. At first, there are three different risk attitude: risk neutral, risk aversion and risk preference for supplier and retailer, then quantizing the risk attitude according to VaR theory and writing the probability expression of risk attitude, in the next step, optimal strategic models are built, at last, revenue sharing contract is made use of to coordinate the supplier and retailer of different risk attitude, obtaining a coordination strategy.PartⅣis the summary of the whole paper including chapter 5. It summarized the main work and gives some useful suggestions for future research. Main contributions of this paper are briefly summarized as follow:(1) Compared to the former literatures which only consider one or two factors in demand change, this paper consideres three factors including market size, product cost and price sensitivity coefficient in the non-risk attitude model, which is more suitable for the actual situation.(2) In the model study of considering risk attitude of the members under stochastic demand, this paper integrates VaR theory with probability knowledge, quantizing the risk attitude of both risk aversion and risk preference, making use of revenue sharing contract, achieving series of coordination strategies.