Research On The Return Problem Of Unbalanced Bargaining Power Enterprises In Supply Chain

Recently, returns become an important part of the reverse logistics, especially thereturns between manufacturers and retailers. Small and medium-sized manufacturingenterprises provide supporting services to large-scale manufacturing enterprises and at adisadvantage status in the entire supply chain. Survival and development are restrictedby the downstream dominant enterprises. Therefore, how to improve the unbalancedbargaining power situation between the small and medium-sized enterprises and largeenterprises, to increase the profit of entire supply chain is particularly important forsupply chain management and development of enterprise.Firstly, this paper introduces the research status and research achievements ofreturns, returns model and the returns of the unbalanced bargaining power enterprises.Then, the theoretical research of the return of goods,“the unbalanced bargaining power”and supply chain contract has been carried out detailed. Secondly, this paper mainlyanalyzes the profit model between manufacture and retail at unbalanced bargainingpower condition, establishing manufacture and retail’s basic profit model of withoutregard to returns and considering returns. Numerical simulation shows that compares tothe dominated retailer, manufacturer’s profit greatly reduced under considering returns.Then, in view of the basic profit model of participates in supply chain, the paperestablished three improving model which is based on the supply chain buyback contractmechanism, considering the on-sale return model and considering the return model offeedback strategy. These models aim to enhance the profit of manufacturer and thewhole supply chain and relieve the unbalanced bargaining power condition. Numericalsimulation shows that the last two improve model can work. At last, taking the smalland medium-sized manufacturing enterprise in Chongqing as an example, this paperintroduces the return process between this enterprise and its downstream retailenterprise and uses the already constructed model to improve the process.This paper systematically analyzes the causes, consequences and improvingmethod in the unbalanced bargaining power enterprises and has a thorough study for theunbalanced bargaining power enterprises’ optimization coordination model. This research will has a certain reference significance for the small and medium-sizedmanufacturing enterprises’ development at a disadvantage position.