The Model Of Perishable Products Supply Chain Coordination And Its Application

The concept of supply chain first was given in American expert Peter Drucker’seconomic chain in1982, and was evolved into supply chain, but the idea of supplychain management had been developed in late1990s. Then it had widely been used inbusiness flow, logistics, information flow and capital flow etc. Especially, it had beenapplied more and more in business economics, so it has been pay more and moreattention by people in recent years.The problem of supply chain coordination is an important content of supply chain,it relates to the assignment profit problem of each supply chain members, and themaximization profit problem of whole supply chain. In order to ensure the whole supplychain can operate effectively, it may use supply chain contracts to coordinate.The model of perishable products supply coordination and its application arestudied in this paper. On one hand, considering the sale effort level factors, offering twodifferent commodities, with the feedback and penalty contract and buyback contractusing at the same time, supply chain profit model consist of retailers and producers isestablished. Then the model is extended to the production of manufacturer, distributorand retailer in the three stage supply chain model. On the other hand, the optimal orderquantity of two kinds of products and the optimal sale effort level should satisfy therelationship and the algorithm are given, when the whole supply chain is coordinated.In application, according to the coordination model of perishable products, whichhas been studied in the second chapter, the brand apparel supply chain optimal orderquantity and the optimal effort level are discussed in this paper. And several changes inthe volume of cases are studied, the order quantity of two clothes, optimal sale effortlevel and expected profits of the changes are given. Finally the grey relation analysis for the impact of their all factors is made.