Study On Cooperation Decision-making Of Supply Chain Based On Target Rebate Contract

Nowadays, under the background of the increasingly fierce market competition and the changing customer demand, supply chain management has been the main management mode for modern enterprises. In the actual economic activity, supply chain member enterprises are independent economic entities. They follow the principle of interest maximization, which inevitably damages the whole interest of the supply chain. Therefore, how to design a supply chain contract to promote cooperation between the system members and coordinate the distribution of the interest in the system is being paid more and more attention. Faced with more and more complex market environment, supply chain members can not get the precise message of market, which is important to study the supply chain contract under the unknown demand distribution. Besides, supply chain is composed of different members or organizations, and supply chain members hide information for their own interests which generates asymmetric information. How to design a supply chain contract to coordinate the interest of supply chain under asymmetric information has become a key issue in supply chain contract research.This paper adopts both qualitative and quantitative researches to study a two-echelon supply chain cooperation decision-making based on the target rebate contract. Firstly, the article summarizes the previous researches about supply chain and rebate contract, and proposes the main content and technical routes. It also elaborates the theory of supply chain information, the core of supply chain management and the definition and classification of supply chain contracts. Secondly, the paper establishes the target contract based on the known demand distribution and the unknown demand distribution under symmetric information, uses the min-max approach to solve the unknown demand distribution. Target rebates under the known demand distribution and the unknown demand distribution are compared by numerical simulation. Thirdly, the paper considers the asymmetric information between the supplier and the retailer under the unknown demand distribution that the retailer can get more precise demand information than supplier, establishes the target rebate contract model to make the retailer share information which can weak the negative influence of asymmetric information on the supplier and the supply chain system, uses numerical simulation to solve the model and analyze the feasibility of the rebate strategies. Studies show that under the symmetry of the demand information, the target rebate is not only able to achieve optimal interests between the supply chain members, the supply chain system to achieve the interest maximization; under the asymmetry of the demand information, supply chain members can through the contract parameters to constrain the retailer to accurately reflect the true demand information to achieve the interest optimization.