Supply Chain Coordination Model With Operation Of Marketing And Quality Control Under Random Environment

With the tide of economic globalization, the traditional competition mode among enterprises has been transformed into chain-to-chain competition mode. Therefore, in reality, the supply chain manufacturers and retailers, in order to improve the whole performance of the supply chain, have to pay their own efforts. Among them, the product quality and product marketing has become the direction of the efforts of manufacturers and retailers. Product quality can affect the product’s reputation and the market demand, product marketing operation will consider investment in product advertising to expand the visibility of the product, the potential to stimulate consumer desire to buy. Thus, considering the operation of the marketing and quality control effect on supply chain is particularly important.Firstly, this paper explores quality control problem by considering the stochastic demand situation where a manufacturer sells its product through two competing retailers. The effect of manufacturer’s quality control efforts and two competing retailers’ quality inspection efforts on each retailer demand is analyzed. The optimal quality control efforts of the manufacturer, the optimal quality inspection efforts of two competing retailers and the optimal order quantity of each retailer are given under decentralized decision and centralized decision system, respectively. The risk aversion coordination contract is proposed to achieve coordination of supply chain. Finally, the numerical example is presented to illustrate the model.Secondly, this paper studies a closed-loop supply chain system consisting of one manufacturer with random yield and one retailer with demand relying on advertising investment. The models of expected profit of supply chain system are established under the centralized decision and decentralized decision, respectively. The optimal new products yield of the manufacturer and the optimal advertising investment of the retailer are given under decentralized decision and centralized decision system. The revenue sharing and cost partaking contract is proposed to achieve perfect coordination of supply chain. Finally, the numerical example is presented to illustrate the model.At last, this paper studies supply chain coordination problem of the demand depending on the retailer’s selling price, advertising and the manufacturer’s quality control, The effect of retailer’s advertising and manufacturer’s quality control on the market demand is analyzed. The optimal sales price of the retailer, the optimal quantity of the retailer, the optimal advertising effort level of the retailer, the optimal quality control effort level of the manufacturer and the optimal wholesale price of the manufacturer are given under decentralized decision and centralized decision system, respectively. The franchise contract is proposed to achieve perfect coordination of supply chain. Finally, the numerical example is presented to illustrate the model.