Applied Research Of Supply Chain Coordination Mechanism Based On The Price Game

With the rapid development of economic globalization, the enterprise need notonly to satisfy the personalized demand of customers for products, but also to dealwith the fierce competitions which are caused by the domestic and foreign companies.In order to achieve the long-term and sustainable development, the enterprise urgentlyneed to establish coordination relationship with the members which are in the samesupply chain so that they can effectively cope with different kinds of threats andchallenges in the product market. Based on the game theory and chaos theory, thispaper perfects the product demand function, and develops price game modelsbetween supply chain members on the basis of practical problem’s characteristics ofthis field in China. We theoretically analyze the models, explain the results from theperspective of management, economics and reality, and put up with the applicationvalues in practice. The main content of this dissertation is as follows:1. Manufacturer as the leader in the market, we develop supply chain modelsbetween manufacturer and supplier, dual channel, and manufacturer and retailer. Wealso analyze the price game between supply chain members in the three modelsrespectively. According to different supply chain models, we introduce centralizeddecision, return policy and revenue-sharing mechanism, which aim at improving theperformance of whole supply chain and the stability of product market in differentsituations.2. In the return policy model, we introduce the service value and preference ofcustomer for different channels into the product demand function, which more fits theactual situation of dual channel supply chain. We get the optimal price strategies ofmanufacturer and retailer under the condition of decentralized decision and returnpolicy respectively, and study the influences of relative parameters on theperformance of whole supply chain through numerical simulation. The results showthat return policy can effectively reduce the risks that is caused by the marketfluctuation. What’s more, it also can improve the performance of supply chain andthe stability of product market during the price game.3. In the revenue-sharing model, necessities as the main research object, we setup the nonlinear function of product demand, which is more close to the reality. Through numerical simulation, we study the equilibrium points of retail prices in thedecentralized and revenue-sharing model respectively. And we also analyze theimpacts of price sensitive coefficient and price adjustment speed parameter on theperformance of supply chain. Through the investigations, we find out that therevenue-sharing mechanism can efficiently improve the stability of market during theprice game between retailers. And it also can transfer some supply chain benefitsfrom manufacturer to retailer, which motivates the enthusiasm of retailer andimproves the stability of whole supply chain.The findings of this research can provide suitable sales strategies for enterprisesunder different product competition conditions, which can not only improve thecompetitive edge of enterprise, but also provide a theoretical basis for maintaining thestability of product market.