Research On Supply Chain Coordination Model Based On The Commodity Price Changes And Repurchase Contract

As the market competition changes step by step from single enterprise competition to supply chain competition, a lot of enterprises reduced cost and enhanced competition power by managing supply chain. Throughout the supply chain, there were a large number of switching and circulation about logistics, capital flow, and information flow. The efficiency of those activities determines the products’costs and prices, and thus has a significant impact in increasing customer value and satisfaction obtained. Supply chain contract is just an effective mechanism in improving the performance of supply chain. It will clear responsibilities and obligations of the parties by changing some external management process into the internal management processes, constrain the supply chain members’ conduct, coordinate their interests, in order to improve the efficiency of the supply chain.This study selected buy-back contract to supply chain coordination. Buy-back contract is the widely used means of a contract, mainly for demand uncertainty, short product life-cycle market. Based on the literature related to buy-back contracts and the master of supply chain coordination theory, supply chain contract theory, specifically to consider the cases of the supply chain coordination under repurchase contract in the sales price unchanged and sales prices down.(1) Focus on the case of sales price remains unchanged, the original buy-back contract model is analyzed and optimized, and the original model is corrected to solve the problem of vendor cost of sales information are asymmetric, then to make the supply chain coordinated.(2) Focus on commodity prices declinesStudied of two-stage fire sale that is the more typical in multi-stage sales. Through the model analysis in the case of focused strategy, obtained the supply chain system optimal order quantity and the maximum expected profit, and then designed the buy back contracts model to coordinate the supply chain when the information is symmetric, meanwhile designed the portfolio contract of repurchase plus subsidies to coordinate the supply chain when the demand information is asymmetric.According to microeconomics point, commodity price fluctuations is affected by supply and demand, that rising commodity prices, means that supply less than demand, so there will be no surplus of goods, also needn’t to consider buy-back contracts to coordinate supply chain. Therefore, this study did’t consider the price increase.