Study On Coordination Strategy Of Retailer-led Supply Chain Based On SA-GA

On the condition of supply chain coordination was strengthening in recent years, retails had a stronger bargaining power along with their function and position growing up. And the cooperation of suppliers and retailers is becoming increasingly important at the same time. Retailer-led supply chain as a new mode of supply chains is more and more attention. In the supply chain which is component by retails and suppliers. Retails as the main party in the game affect the operational efficiency of the whole supply chain, whether it can coordinate with its partner to cooperate effective or not. So the research of supply chain coordination is important for retails to keep their leadership. It also contributes to improve the competitiveness of the whole supply chain.This paper aims at studing VMI supply chain coordination problems of retailer-led supply chain under elastic demand conditions. First of all, research background and the meaning are reviewed, and this paper states present domestic and foreign research situations, and indicates existing problems; analyzes problems like the retailer-led supply chain coordination, especially the one of multi-suppliers and single-retail VMI coordination. Secondly, from the view of retailers, which is the main party of the Stackelberg game, this paper proposes joint supplies period and consistent price discount coordination strategy; builds a whole system profit model based on multi-suppliers and single-retailer supply chain; also compares all parties’profits before and after cooperation. Thirdly, on the basis of comprehensive researches of genetic algorithm and simulated annealing algorithm, structures a retailer-led VMI coordination strategy model based on SA-GA; discusses how to design an algorithm to optimize models, and then gives steps of SA-GA hybrid optimization algorithm. Fourthly, author applies SA-GA to optimize an example model, and compares with other algorithms to get the best strategy; also gives the result of that example which shows that the SA-GA coordination strategy can realize the Pareto improvement of incomes for both buyer and seller, then gets the optimal profits of the supply chain system. Finally, approaches and suggestions are given for averaging up the level of SC’s coordination, also summary and outlook are carried out.