Retailer Decision Based On Product Discount

In recent years, any enterprise has been one part of the whole supply chain network, instead of a monopoly of the individual due to the development of economy and National policy regulation of various industries. As we all know, enterprises in such a supply chain can influence each other. For example, in a typical three layers of the supply chain network including of suppliers, retailers and customers in the demand market, the retailer can not only buy products from upstream but also sell them to customers in demand markets, and then plays a key role in the operation of logistics chain and capital chain as an indispensable essential part. Furthermore, the retailer needs to make both decisions that how many products to order from upstream and how to pay on them in trading so as to gain much more profit, and his decision directly influences the whole supply chain.This paper coordinates decisions on the supply chain based on the retailer’s interests, and the research starts from both decisions of order and payment. Firstly, suppliers may stimulate retailers ordering many more products under the quantity discount policy with the aim of expanding the scale of production and reducing the transportation costs. Besides, customer satisfaction on the products provided by retailers can directly affect the next order decision. Then, the retailer decision-making model with customer satisfaction under the quantity discount is performed to determine how to choose suppliers and how to distribute the order. Later, retailers decide how to pay the order. There is a deferred payment policy which namely means the interest-free loan provided to downstream (retailer) by upstream (supplier) in a certain period, and equal to a payment discount. Based on this, this paper establishes the primary deferred payment decision-making model and secondary deferred payment model for retailers. In the primary model, we study the relationship of the deferred payment and retailers’ order quantity and profit under the consideration of customer’s constant demand; and in the secondary deferred payment model, we set customer’s demand not be a fixed one, but a function of deferred payment period which is provided by retailers to customers, and we study the relationship among retailers’order costs, order period, profit and deferred payments. Finally, each model following the paper is simulated by numerical example, and verified rationally.