The Research Of Supply Chain Coordination With Commitment And Bidirectional-option Contract Under Information Updating

Supply chain is composed of many relatively independent unities. Dur-ing system operation, there occurs inevitably situation which is competition between internal members. Especially for seasonal goods, which has long pro-duction cycle, short sales period and uncertain market demand. These charac-teristics always cause the production capacity can not adapt quickly to market demand, and result in more easily a vicious competition easier between inter-nal members. Therefore, it has been a great challenges for policymakers how to achieve resource management, information sharing and risk sharing by im-plementing effectively unified optimization and coordination. Optimization and coordination has already became one of core objectives for Supply chain management. It can be implemented by introducing cooperation mechanism and optimizing parameter setting. In this way, it not only does not harm the interests of any member, but also can improve the entire supply chain overall profit level and the market competitiveness.In the paper, we consider the supply chain coordination problems under updating forecasts with commitment contract and bidirectional-option con-tract. And the models and the optimal strategies for supply chain members are given. Further more, we calculate and analysis the system.As a model of relational contract, commitment could ease effectively the internal competition between internal members, and guide the members of the supply chain form benefit segmentation to mutual benefit and win-win result. Thus it has become a favorite measures for policymakers. In the pa-per, with the demand information update, coordination and optimization of commitment-contracts is studied for two grades three-stage model of supply chain system. In the condition of semi-symmetric market information and risk equivalence for all the internal members, Manufacturers and wholesalers both have two decision opportunities at pre-season, while wholesaler can have a opportunity to restock at mid-season. Facing this kind of situation, the min- imum supply contract is Introduced in this text. Manufacturer need promise wholesaler to provide a certain number as the minimum quantity of product delivery in the early stage. In exchange, wholesaler must provide the market update information to manufacturer. In view of this contract, the models are established respectively, and the optimal strategy for supply chain members are given by calculation and analysis. In order to obtain more replenishment inventory, wholesalers would choose to exaggerate the updated information in a certain extent. Based on these, we research information sharing strategy of wholesalers and we think it is beneficial for the coordination of supply chain.Options - an effective tool to avoid risks in the financial and economic theory, with risk-sharing, channel coordination and supply elasticity, which has also been widely used in supply chain management. In this paper, the bidirectional-option contract is researched for coordination and optimization of supply chain. In this case, the manufacturers would choose to stock semi-finished product during manufacturing end product and the can product a-gain in the sailing period. risk-neutral decision maker, wholesalers, are able to choose to buy the call option or put option from the manufacturer while sub-mitting orders. In the paper, the option decision model for members has been build, and the optimal strategy is given after analysis and calculation. Finally, taking into account this situation that the wholesaler has certain preferences: risk-averse or risk-seeking, the relationships of parameters and the impacts of price increasing proportion are given in the supply chain coordination mecha-nism after further study.