Demand Uncertainty Case Study Of Supply Chain Contract Price Subsidies

The competition between the supply chains has become the main form of current market competition, enterprises in the supply chain should be coordinated, so as to achieve the entire supply chain efficiency optimization. In comparsion to single enterprise environment, supply chain has more uncertainty, information asymmetry and other characteristics, which may lead to the disorder of supply chain; at the same time each enterprise on the supply chain pursues their own benefit maximization, thus possibly results in the production process is in conflict with the whole supply chain target. Through the related supply chain contract to reach a constraint and the coordination of various members of a supply chain, in order to improve the overall efficiency of the supply chain, has become the twenty-first century supply chain management research.The paper mainly aims at the uncertainty of demand of goods, select price subsidy contract to study supply chain coordination.The paper first reviewed the supply chain price subsidy contract research results; and then summed up the related basic theory of the supply chain management, introduced the supply chain coordination connotation and harmonized standards; and introduces the supply chain contract definitions and related forms.Then the paper establishes the model of a centralized supply chain, to get the whole system to achieve the coordination of the necessary conditions, and it is used as a standard for comparison; after analysis the model without a contract of the decentralized supply chain, come to the result:supply chain couldn’t achieve coordination without the supply chain contract.Then considering the dispersion type of supply chain, analyzes the supplier and retailer respectively under three different market position when the price subsidy contract can make the system achieve coordination.Finally an example is given to demonstrate the model.