Research On Price Discount Model For Coordinating The Three-level Supply Chain Under Elastic Demand

As the age of global economic integration and dynamic market competition hascome. In the face of increasing fierce market competition, customer uncertainty,incremental personalized requirements, curtate product life cycle, more complexproduct structure and environment with the rapid development of high-tech, Supplychain management has become an important method of enhancing enterprisecompetitiveness. Supply chain is a kind of nets chain system which is made byindependent and rational economic entity. when making management decision, Eachnode enterprise will have different goals to obtain profits as much as possible.Inevitably , the conflict of interests between enterprises will appear, which affect theoperations and benefits of the whole supply chain. Therefore, the research on thecoordination of different node enterprises in the supply chain through the pricediscount has a very important significance both in theory and practice.This thesis regards the coordination of price discount of three level supply chainwhich consists of single manufacturer, single distributors and retailers as the objective.It considers the coordination of three level supply chain problem which the product ofthe order quantity price discount strategy causes, under the environment of elasticdemands, After understand the present situation of the domestic and foreign relevantresearch , the main content and technical line of this thesis is raised; The basic theoryof supply chain coordination and method is introduced, the definition of supply chaincoordination, the reason and consequences of imbalanced supply chain ,the structureand characteristics of three level supply chain is illustrated; by analysis of the modelof the biggest profits theory decision under distributed situation and price discountcoordination strategy, The thesis design decision-making bi-level programming modelthat based on production batch, order batch, price discount. simulated annealingheuristic algorithm is applied to solve the relevant discount parameters to get ideasand methods. Finally, the feasibility of the model and efficiency of the algorithm isverified through example. In the market of elastic demands, the balance of productionand marketing between nodes enterprise can be lived up, the goal of effecintcoodiration and maximizing profit of the whole supply chain is achieved.In the modeling process, The thesis explores impact of cost factors such as stocklosses, the lead time of product upon profit, and the model based on production batch,order batch, price discount joint does well in balancing the profit distribution of eachnode supply chain enterprise, improving the operation efficiency and the marketcompetition ability of the whole supply chain. The content and conclusion can providetheoretical guidance and reference for supply chain node enterprise.