Study Of Cooperative Relations Between Suppliers And Retailers Based On Game Theory

In recent years, with the rapid development of retail business, the new retail organizations continue to emerge, the mode of multiple store’s operation have been spread roundly, together with the extensive application of new technology and the improving of logistics efficiency, retail industry in China has significant changed. As the expansion of retailer’s market forces, retailer has greater powers to control supplier in the channel, so it causes the contradictions of the retailer and supplier, have damaged the interests of both sides. Therefore, how to build and strengthen the partnership of suppliers and retailers to achieve win-win become an important research topic. By the tools of game theory, the thesis analysis is based on efficiency promotion, and will give an explanation to how to choose tactics when facing non-cooperation and cooperation.Firstly, the paper introduces the supply chain and supply chain management concepts, summarizes the development process of the supply chain and put forward the concept of supply chain partnership. Secondly, the paper introduces the relevant theoretical knowledge of game theory, pointed out the game theory applied to the analysis of the relationship between suppliers and retailers are viable.In the essential part of the paper, by wholly information dynamic game model, I analyze the relationship between suppliers and retailers. Under the condition of non-cooperative game, to pursue their own benefit maximization, suppliers and retailers will compete with each other, and this is the source of the conflict between suppliers and retailers. But, under the condition of cooperative game, the supply chain’s whole profit is greater than the non-cooperation, non-cooperation of suppliers and retailers will result in lower earnings throughout the supply chain. Non-cooperative game of the individual rationality conditions is unstable and inefficient. In the game of long-term cooperation relationship, I aimed at analysis of one game in short-term and repeated games in long-term, finally I get inspiration to promote cooperation between suppliers and retailers.In the advice of the paper, in order to achieve cooperation between suppliers and retailers, First of all, from the way of promoting cooperation, suppliers and retailers can sign win-win-price contract, when suppliers and retailers was in a dominant position cases respectively, win-win-price contract range which signed is different, for all wholesale prices, the profit of the supply chain is not all optimal, it gained the optimal wholesale price range with two different modes; Secondly, I put forward several suggestions to strengthen cooperation for suppliers and retailers, respectively; Finally, I point out that we should exert the role of government play in promoting the cooperation of suppliers and retailers. Strengthen cooperation will help ease the conflict between them, the entire supply-chain will make quick react to markets and the enterprise competitiveness in the market will have greatly increased.