The Strategy Study Of Supply Chain Cooerative Innovation Of Products

Nowadays, the competition of global science and technology isincreasingly intense and the product life cycle is shortening, so enterprises needto develop new products constantly to cope with fierce competition of themarket. The development of new product is inseparable from the supply chaincollaboration between enterprises. In order to reduce the cost of developing newproduct, shorten the time and improve the quality and level of new products,enterprises must integrate the resources of supply chain and implement theproduct collaboration innovation.With the development of times, product innovation of our country’senterprise is faced with new opportunities and challenges. In order to meet thecustomization demands of customers, enterprises of our country are required toproduce and assemble different forms of products through the modularproduction. If Chinese enterprises want to conform with the world, they mustdraw lessons from the success experience that foreign supply chain’s productcooperative innovation has, change our existing product innovation, enhanceproduct quality, improve the international products competitiveness, select modeand operation mechanism which are suitable for China’s supply chain’s productcooperative innovation.This article focuses on the operating mechanisms of supplier involving inproduct innovation and innovation of product combination. The main contentsare summarized as follows:First, the operating mechanisms under the supplier involvement in newproduct developmentIn this paper, we consider a situation that the supplier involvement in newproduct development can affect the future demand and analyze the supplier’soptimal investment policy and the manufacturer’s optimal ordering policy underthe two situations: deterministic initial demand and stochastic initial demand.Finally, we give the conditions of realizing the supply chain coordination. It isshown that the supply chain can be coordinated only by the subsidy mechanismunder the deterministic initial demand situation; however, the supply chain can be coordinated by the subsidy mechanism adding other mechanisms under thestochastic initial demand situation.Second, the operating mechanisms of product combined innovation.Through the analysis of production decision of combined production whenexisting supply risk, the paper gets that as long as the innovation of productcombination exists profit, manufacturers should choose the quantity which meetthe needs of combined production. In the analysis of product pricing decisionwhen existing supply risk, it can get the combined production’s pricing incondition that the supply uncertainty is subject to uniform distribution and themarket demand is linear. Besides, the optimal combined product pricing isconnected with the cost of product1and product2, and the related information ofmarket demand.Third, the case study under the innovation mode of supply chain productcooperation.In case of Shenzhen oceans′king lighting engineering Co., LTD, the paperanalyzes the new strategy of supply chain product’s cooperative innovation andderives the risk and control strategy of implementing supply chain product’scooperative innovation.