Study On Coordination Of Supply Chain For The Product With Continuously Decreasing Price

With the diversification of customers’demand and the rapid speed of the product upgrading, the competition among enterprises has turned to competition among the supply chains. Due to the interests of each member on the supply chain are different, there will be a conflict between the benefit of the whole sup-ply chain and the member. For the long-term survival and development, partici-pating in the supply chain coordination is an inevitable choice for many enter-prises. This thesis studies the coordination of supply chain for the product with the continuously decreasing price, when the supply chain consists of a single re-tailer, a single supplier and a single product. The main contents are as follows:(1) The coordination of supply chain for products with the demand affected by selling price and supplier service level is studied. Assuming that the price of products is a decreasing arithmetic progression about the time, an inventory model with decentralized decision making and a model based on the trade credit and profit improving mechanism are developed respectively, and a supply chain coordination method based on the trade credit and profit improving is proposed. The computational method of the optimal order cycle and service level is given through analysis. The necessary condition of the effective coordination method is presented. Finally, the numerical examples are given and the effect of main parameters on the retailer, supplier and the supplier chain’s profit is analyzed.(2)The coordination of supply chain for products with time-varying de- mand and price is studied. Assuming that the price is a decreasing exponential function about the time and the demand rate is a trapezoidal function of time, the inventory models with decentralized decision making and centralized deci-sion making and a model based on price discount and profit sharing mechanism are established respectively, and a supply chain coordination method based on price discount and profit sharing is proposed. The optimal ordering strategy to the case of decentralized decision making is given, and the value range of the profit sharing factor achieved the effective supply chain coordination is pointed out. Finally, the numerical examples are given and the effect of several pa-rameters on the optimal order strategy is analyzed.