Supply Chain Between Manufacturer And Retailer For The Stackelberg Game Problem

Coordination of the supply chain is a major strategy for today’s business competition,is currently the research focus of the international academia. Supply chain problems arecaused widespread concern in business and academia, and the growing number of scholarsdedicate to the study of supply chain coordination, because it can reduce the running coststo enable enterprises to achieve higher profits. In the Past two decades, the coordination ofthe members in the supply chain has been made a series of achievements. With the rapiddevelopment of today’s social economy, supply chain coordination problem should alsoadvance with the times.Based on Stackelberg game, this article composed of two layers of non-integratedsupply chain coordination by a single manufacturer with a single retailer the main contentsare as follows:First, we studied the supply chain coordination model conditions assume that with astock-dependent demand rate. This model considered the three cases: the two sides’coordination of operational strategies, manufacturer and retailer independent strategy tocoordinate the strategies of the two sides reached the amount of discount. Contrasting of thethree strategies, the two sides reach the amount of discount strategy can make the maximumvalue of their average profit. At the same time，the supply chain achieves a perfectcoordination.Secondly, we also studied the Newsvendor-type problem. Considering that the demandrate is random, the manufacturer agrees to place promotional advertising costs, assessesretailer and manufacturer directly faiths, the Newsvendor model of the supply chain wereestablished. This Model provided two kinds of decision-making program, the firstindependent decision-making through the analysis of the model to prove the manufacturer’sprofit only the maximum, and by numerical calculation of the optimal price discount rateand the Newsvendor other optimal value. The second strategy is two sides cooperation withthe decision-making, and learned through the analysis of the model, only the maximumvalue when the price discount rate to achieve optimal expected profit of the entire supplychain; assume that the two sides agreed to cooperate, their cooperation will make their ownexpected profit than their own independent decision-making is high, thus the profits of theentire supply chain also will be increased, the supply chain cooperation to achieve a"win-win" situation. The last, this model is also instance verify its effectiveness and practicality in the production and sale of enterprises.Finally, we summarize our paper, list supply chain coordination issues to beresolved in the future, and made the research prospects.