Dual-Channel Coordination Mechanism Based On Product Life Cycle

Market competition in the 21st century has not only been the competition between enterprises, but more involved in the supply chain. Therefore, the cooperation between supply chain members is particularly important. To strengthen cooperation between each other, more and more enterprises begin to focus on supply chain management and supply chain collaboration. Meanwhile, with the frequency of replacement products, more and more products show features with a short life cycle.For these enterprises, how to cooperate with upstream and downstream enterprises to form a more stable supply chain, to increasing the value of the supply chain has become a primary consideration.This paper researched the profit-sharing between manufacturer and retailer for these short life-cycle products. Discussed the pricing game between the supply chain members, and considered how to maximize the supply chain profits. The results show that it’s beneficial to open electronic channels. At the same time, through modeling and MATLAB simulation method, show that there is an optimum range of profit-sharing between manufacturers and retailers, and find the profit function and price elasticity are closely related to the product.