Perishable Product Supply Chain Based On Buyback Contracts Newsboy

The globalization of economy, the diversification of products and the rapid development of information technology, make the keener market competition among enterprises is intense. Customer’s needs develop in the direction of individuation, diversification, and just-in-time. Observing the current commodity market, along with the progress of science and technology and the feature of a buyer’s market, more and more perishable goods appear in the market. Therefore, putting the perishable product category as a kind of special research object; and from the perspective of supply chain coordination, establishing effective supply chain coordination mechanism of the perishable product, will be of the very important theoretical and practical significance to optimize the perishable product’s production plan, improve the system’s overall profit and realize multi-win-win situation of the supply chain.How to effectively integrate among the supply chain enterprise members, making their performance and the whole supply chain system optimal, is the focus of current research on theory and practice. Through a large number of the theory in theory research and practice of exploration, it finds that establishing a supply chain contract is an effective way to achieve supply chain coordination. Through setting up reasonable contract parameters, such as price, wholesale price, the repurchase price, quantity, and so on, to achieve the goal of effective coordination of supply chain, making the benefits of the whole supply chain optimization. Related to the common supply chain contracts mainly includes the wholesale price contract, revenue sharing contract, quantity flexibility contract and buy-back contract, other forms of contract are the four combinations. These contracts with their respective adaptability, is widely used in the enterprise.This article is aimed at the characteristics of the perishable goods, taking the market random demand into account, studying the effects of buy-back contract to coordinate the perishable product’s supply chain mechanism. This paper summarizes the research status quo of the supply chain buy-back contract in detail, and systematically expounds the supply chain coordination, supply chain buy-back contract, Newsboy Model and other related theories. Next, basing on the Newsboy Model, whether to join the market demand, the salvage value, the shortage cost, price and wholesale price, sets up the perishable product supply chain category buyback model. According to the characteristics of the perishable goods, theoretically in-depth study the single cycle repurchase model of a single supplier and a single retailer supply chain. By establishing the model without adopting buy-back contract and adopting buy-back contract model for comparison, prove that the introduction of buy-back contract model can make the suppliers, retailers and the coordination state to optimize the whole supply chain system in theory. And then through the design of specific practical cases, into concrete numerical proves in uncertain environment of market demand, a reasonable buy-back contract design can realize the optimum of a supply chain, and makes in the supply chain suppliers and retailers to achieve "win-win" effect. Combined with the actual situation, the end of the paper considers the sales efforts on buy-back contract to coordinate the influence of the random demand model, and summarize the relevant model conclusions.Based on the study of single cycle two-level supply chain, case design direction locates in the direct selling industry in China. As the Chinese government promulgated the direct selling industry related policy, direct sales model gradually been recognized by the French and the direct selling industry in China has grown. And direct sales model is exactly what this article studies the secondary supply chain model. Therefore, Case focuses on the selection of China’s direct selling industry giants-Amway (China) daily necessities co. LTD. By case validation of entities with specific product based on analysis, further demonstrates the conclusion of the model.