Innovative Products Pricing And Input Decision Model Under Yield Uncertainty

With the changing market environment, the competition among enterprises reflects in the competition between supply chain and supply chain. The competitiveness of supply chain mainly relies on the efficient cooperation between company and company. In order to unify the competition and cooperation between enterprises organically, it needs to take into account the endogenous motivation during companies pursue their own profit maximization. However, the cooperation between enterprises facing a challenge of an increasingly complex market environment. The complexity of this environment sometimes results from the uncertainty of supply and demand. On one hand, enterprise is faced with uncertain customer demand. On the other hand, its own outputs are uncertainty. Under this background, companies should truly understand the uncertain factors they facing as to better cooperate with other supply chain members, then taking the effective measures to build a new model of cooperation.This paper takes the view of yield uncertain in the innovative products supply chain, and establishes the coordination joint decision model which is about the quantity of inputs, wholesale prices, and order quantities. Additionally, we study the optimal decision under cooperation and competition environment. Finally, we conclude the measures to improve the overall performance of innovative products supply chain.The thesis mainly from the following aspects:Firstly, this paper briefly introduces the innovative products supply chain’s concept and characteristics. And on this basis, we discuss the theories about inventory decision, pricing decision and enterprise alliances.Secondly, we consider the pricing and quantity decision of a two-echelon supply chain with one supplier and two retailers, and analyze the optimal decision of each member. We examine that strategic inventories have a crucial effect on the equilibrium solution, and study how to carry inventory reasonably to improve the performance of supply chain.Thirdly, consider supplier yield uncertainty basing on the previous chapter study. A commitment contract is introduced by the supplier to ensure that all retailers’ order quantity is satisfied. If the supplier’s actual output is less than the retailers’total order quantity, the supplier can buy sufficient products from other suppliers. The game model between the supplier and the retailers are constructed, and two different wholesale price decision modes are discussed. We compare the performance of the supply chain under each wholesale price decision modes, in order to reduce the output losses by seeking a better decision mode.Finally, we analyze each supply member’s optimal decision with three different modes of cooperation and competition. And we also consider the unit purchase or production cost of supplier, or unit variable cost of retailer impacts on the equilibrium, and discuss how to set up the related parameters to improve the performance of the supply chain.