Optimal Strategies Of Supply Chain With Rebate Contract Under Supply Chain Vs. Supply Chain

With the social division of labor is becoming more and more refined, the competition among enterprises has been expanded to the competition among supply chains. Because of the bullwhip effect and the double-marginal effect, there are many difficults in supply chain management. How to coordinate and distribute the profit of the supply chain among the members, and how to predict external demand for reducing its uncertainty have become the hotspot in recent years.We investigate two competitive supply chains. One supply chain is an integrated one and the other is not. The two supply chains sale products in the same market. Moreover, rebate contract is introduced into the unintergrated one which influences the retailer's decision, obtains the real forecasting information and optimizes the supplier's profit. We establishes four different models: (a)both of the two supply chains forecast the market demand; (b)one supply chain does not forecast the market demand, but the other does; (c)both of the two supply chains do not forecast the market demand. We conclude that: Rebate contract can influence the retailer's decision-making and obtain the real forecasting information; The effect of rebate contract is completely different under different models, and even in the same model under different conditions the effect of contract is different. The retailers should fully consider the cost of demand forecasting, otherwise, they won't get benefits, and will make its own profit damaged; The cost of prediction can also affect rebate contract's items, the optimal rebate contract's terms is different under different conditions; The decision of Supply chain 1 weather to do demand forecasting must keep the same as Supply chain 2's.