Research On Supply Chain Contract Of Manufacturing Enterprise And Retailers Under Demand Uncertainty

In recent times, the progress of science and technology and the development of economy makes enterprises have more opportunities, also make them feel the unprecedented pressure of competition. The market changes quickly, and the user’s demand is very diverse, which makes enterprises need to respond quickly to market. In this process, people increasingly realize the importance of supply chain management, only rely on the power of a single enterprise is difficult to survive in the competitive environment, so more and more enterprises focus on the supply chain. The competition between enterprises has evolved into the competition between supply chains. Good supply chain management can make the information shared by members of the supply chain enterprises by integrating and optimizing the logistics, information flow and cash flow. It emphasizes the cooperation rather than competition.However, in the process of operation of supply chain, it will encounter some problems. On the one hand, enterprises in the supply chain members is different economic entities, so they all want to pursue the maximization of self-interest, which will conflict with the overall goal of supply chain system; On the other hand, the supply chain itself is a complex network structure, and it is dynamic. So the problem of supply chain coordination has become the research focus. It is hoped that in the process of supply chain operation, the supply chain can have more competitive advantage through effective coordination mechanism. Among various kinds of coordination mechanism, the contract mechanism of supply chain coordination is an effective method to coordinate the supply chain. The contract stipulates the behavior of each member enterprise, and it manage every link of the process from order to delivery strictly, constraint the behavior of the members to ensure that supply chain can not only operate effectively, but also can improve competitive advantage, create more revenue.In this context, stackelberg game model and some other methods are used in the paper to study profit-sharing contract of manufacturing enterprise and retailers. First of all, under the environment of demand uncertainty, the paper builds a two-level supply chain composed of a single manufacturer and single retailer. In the supply chain, manufacturer is a leading enterprise, retailers occupies a subordinate position. The paper researches all parties’earnings in the general contract, introduce the profit distribution coefficient, and research all parties earnings in the profit-sharing contract, and Compare two kinds of circumstances by numerical simulation, then come to a conclusion that in this case, a reasonable profit sharing contract design can increase all parties earnings and enhance the coordination of the supply chain. Second, in order to make it closer to the actual situation, the paper put the single retailer expand to multiple retailers, research all parties earnings in the general contract and profit-sharing contract, and compare two kinds of circumstances by numerical simulation, then come to a conclusion that in this case, a reasonable profit sharing contract design also can increase all parties earnings and enhance the coordination of the supply chain. Finally, the paper describes how the profit sharing contract be used in the actual enterprise. There are two innovations. First, the paper designs profit-sharing contract model under the environment of demand uncertainty to research the product quantity, sales prices and earnings of the supply chain system and each member. Second, This paper builds the supply chain structure which is dominated by manufacturer, and put the single retailer expand to multiple retailers, introduce the variable "the number of retailers", to research how the number of retailers influence the earnings of the supply chain system and each member.