Designing The Contract Mechanism For Beijing’s Fireworks Supply Chain

At present, the global economy is recovering. Except the governments’ positive policy, the global supply chain also played a considerable contribution. Especially when the real economy is going out of the woods, the importance of supply chain management attracts the domestic and foreign scholars’attention. Supply chain contracts as the invisible hand of the regulation of the supply chain is becoming a field of research of domestic and international management. Supply chain contracts as the invisible hand of supply chain development is becoming a field of research of domestic and international scholars.This paper will research Beijing fireworks industry, according to the characteristics of Beijing fireworks supply chain, to design the parameter and form of the supply chain contracts between t distribution businesses and retailers, to coordinate the supply chain, to solve effectively supply chain coordination problems reflected in the transaction process of the fireworks.First, the paper analyzes our country’s fireworks supply chain development process, describes structural features of Beijing fireworks’the supply chain, and analyzes the reasons why the Beijing fireworks show two different supply chain characteristics. Next, for the fireworks sales characteristics outside and inside Beijing’s fifth ring road, taking into account the requirements of the supply chain to respond quickly or keep efficient and stable, the paper designs the buy-back contract model and the revenue sharing contract model.The paper analyzes the problems of the Beijing fireworks industry supply chain coordination, designs two supply chain contract model, and provides a way to manage the supply chain for Beijing fireworks distribution units.