Supply Chain Profit Optimizing In Supply And Demand Uncertainty

Economy developing brings to industry evolution. In the environment ofeconomic globalization, the competition between enterprises turns into supply chains.“How to optimize supply chain”, this is the problem enterprise must to pay attention.There are about two aims need to collaborate on supply chain: one is speeding upreaction to the market need, and supplying better production and service to customers;the other one is reducing the cost of operating supply chain, and trying our best toeliminate waste. The paper chooses assembly industry as research breakthrough point.The problem of parts supplying uncertainty coming from parts’ suppliers in theupstream and market demand unsteady in the downstream.“How to weaken this kindof uncertainties, and how to reduce costs to increase profit”, this is the problemsassembly manufacturer must to solve at present.Firstly, the research background is introduced: the competition of supply chainsis more and more intense in modern times, and supply chain collaboration playsimportant role in the fierce competition. The problem is widespread in assemblyindustry that parts supply uncertainty in the upstream and market demand unsteady inthe downstream. Research significance and innovation points are stated. Secondly, thepaper reviews the research progress of supply and demand uncertainties at home andabroad, and discusses the advantage of supply-hub in integration and distribution.Thirdly, model the assembly industry supply chain which includes one assemblymanufacturer and N parts suppliers in parts supply uncertainty in the upstream andmarket demand unsteady in the downstream. Build profit function which includeorder quantity under the uncertain situation, and also build assembly manufacturerprofit function based on revenue sharing under decentralized decision making. Makethe optimal decision point is consistent with supply chain. The optimal profit isallocated between assembly manufacturer and parts supplier by revenue sharingparameters, making the profit of every supply chain member is optimized. And verifythe feasibility of repurchase contract based on revenue sharing on profit optimizedand distribution, that the rectangle area represented supply chain collaboration scope.Lastly, facing the problem of supply and demand uncertainty, the paper study thelogistics entry mode based on Supply-hub from the structure of supply chain,founding spot purchasing and punish mechanism out of stock which is a kind ofincentives and punishment to suppliers. Build profit function of supply chain based on Supply-hub mode, and allocate optimal profit by cooperative contracts. The exampleillustrates the change trend of supply chain and supply chain profit and profit growthrate under the different stability of supply and demand.