A Study On The Pricing And Interest Coordination In The Domestic Automobile Supply Chain When “Three Guarantees” Are Offered

Under the driving of technology and economic globalization, the expanding scope of supply and demand intensifies the competition of domestic automobile products market. Domestic automobile industry is facing the transformation which is from the past a single competition among automobile enterprises to the domestic automobile supply chain. Through the effective organization and efficient management in the domestic automobile supply chain, the members of supply chain can realize resources complementary advantages and the steady development of in the long run. Therefore,the research of domestic automobile supply chain management is one of the important direction of future research of the auto industry, product pricing and interest coordination is the main content in the domestic automobile supply chain management.Since “Three Guarantees” which is short for “Provisions on Responsibility for the Repair, Replacement and Return of Household Automotive Products” were implemented on October 1, 2013 in our country. Its impacts on domestic automobile after-sales service market and the supply chain have drawn attention of person from all walks of life.The paper takes the domestic automobile supply chain that consists of one manufacturer and n(it indicates an unspecific integer) dealers as the object of this research, A pricing and interest coordination model is created basing on the impact analysis that the service will produce the cost and value increase to the members in the domestic automobile supply chain.First of all, according to the domestic automobile market competition and the demand characteristics, a demand function of domestic automobile is established. And then a pricing model based on the decentralized decision in the supply chain is created regardless of the service.Next, another pricing model is created, which considers both the relative costs and the benefits that the service causes. According to the making process of decentralized decision in domestic automobile supply chain, decision model based on bi-level programming ideas is built. And the solving method of the decision model, which bases on the chaos optimization algorithm, is given to get product prices, sales and the overallinterest in domestic automobile supply chain in the paper.Further, a game model of cooperation between manufacturer and dealers is built.which is created to relieve the efficiency damage in the supply chain under the decentralized decision. And the Shapley Value Method is used under the coordination mechanism to strengthen the cooperation hand in hand.The last, the numerical simulation is used to check the effectiveness of the pricing model when it is in the decentralized and centralized decision on the supply chain.According to the simulation results, this paper analyzes the specific impact on the domestic automotive supply chain of the three guarantees.