Research On The Problem Of Supply Chain Coordination With Contract

With the globalization of economy development with the globalization of economy development, market is increasing competition. The development begins from vertical integration of to crosswise integration. So, supply chain management with cooperation, win-win, integration as the core idea becomes very important. In the complex supply chain, in order to maximize their own benefit, each node enterprises will make decisions which often conflict with the integral goal of the supply chain and reduce the performance and competitiveness of the supply chain. This demands each node enterprises in the supply chain should be on the good cooperation and the game. More, in light of their own negotiation skills, they could reduce the conflict between each other, lower the cost of supply chain operation, optimize supply chain performance, improve supply chain service level by signing some contracts.This paper selects the three basic contracts to study the coordination problem of the supply chain. They are several contracts mean which are in a wide range application, mainly for products that uncertain market demand and short cycle.This paper expounds the wholesale price formula that makes the profit of both maximization on the basis of the optimal strategies of suppliers with the wholesale price contract when the size of market faced by retailers and the production cost of supplies both change. Then in the emergency case, it launches the contract parameters make the supply chain based on repurchase contract model coordination, and gives the two kind of contract model numerical simulation. Next step, it discusses the revenue sharing contract model in the case of the asymmetric information and retailers-dominated, and analyzes the influence the contract parameters inflict on the supply chain coordination and decisions of suppliers and retailers. At last, the paper analyzes the response to the emergency that the joint contract with supply chain of three level gives .