Research On Two-stage Supply Chain Coordination Problem With Asymmetric Demand Information

With the rapidly changing market environment, a single enterprise is difficult to dealwith the fierce market competition, in order to improve the competitiveness of enterprises,there needs to form a supply chain alliance, thus competition among enterprises has evolvedinto the supply chain and supply chain competition. Supply chain based on the mechanism ofcompetition-cooperation-coordination, each node enterprise should pay more attention tocoordinate and optimize with other node enterprises, while in the pursuit of optimizinginternal resources, the purpose of a supply chain coordination is to maximizing the nodeenterprises’ income as well as the system’s profit. Therefore, coordination of the supply chainis becoming a hot issue of supply chain management.Based on the analysis and summarization of lots of at home and abroad supply chaincoordination research results, this paper build a two-stage supply chain system composed of asingle manufacturer and a single retailer. First discuss the retailer with market demandcomplete information while the manufacturer not, that is, under asymmetric demandinformation, the non-cooperation and cooperation game model; then assume themanufacturer’s capacity is limited, if to change the production, will bring economies of scale,so how to make decisions to achieve supply chain coordination.The first two chapters lay a theoretical foundation for this paper, the third chapterfocuses on the case of asymmetric demand information on supply chain coordination. Unlikemost of the research literature, this article assumes that (1) demand is a function of price andretailer’s marketing expenditure, the manufacturer does not know the actual demandinformation;(2) due to the particularity of the industry, manufacturer produces high-techproduct with high start-up cost, without considering capacity constraints, the order decided bythe manufacturer. Under asymmetric demand information, in order to improve their ownearnings as well as achieve supply chain coordination, the manufacturer to develop acoordinated strategy to promote the retailer to share demand information, and this wasvalidated with numerical examples and sensitivity analysis on some variables. Chapter fourrelax the assumption, considers the manufacturer capacity is limited and change the supply chain coordination in the production capacity will affect the scale effect of the case, andcombining with the third chapter of asymmetric demand information supply chaincoordination model, considering the dual factors coordination of supply chain and gives thesolution.This study has some realistic directive significance in the enterprise applications, and hasa role in promoting supply chain coordination study under asymmetric information.