Research On The Influence Of Game Status On The Coordination Of Extended Warranty Supply Chain

In recent years,extended warranty services in the computer,automotive,household appliances and other durable products industry is very popular.An important feature of such industries in the past is that manufacturers played the role of leaders.Facing with increasingly fierce market competition and the ever-changing economic status,the retailers in the supply chain reinforce their own strength,and sometimes even dominate the operation of the entire supply chain direction.Based on the current situation of retail market,this paper carries out an analysis of the extended warranty models for the manufacturer or retailer as the leader.This paper focuses on the impacts of the game status between the manufacturer and the retailer on the products' and the extended warranty's policies in the extended warranty supply chain.We assumed that there are only one manufacturer and one retailer in this chain,and used the·Stackelberg game theory to describe the game between them.This article also examined the situation where the manufacturer or the retailer as the leader,We considered the quality of the product as a decision variable to compare the two types of extended warranty sales channels:the retailer or the manufacturer provides the extended warranty.Research shows that,whether the manufacturer or the retailer as the leader,the optimal product quality is worse when the manufacturer offers the extended warranty,and the sales of products and extended warranties will be the maximum when the retailer provides the extended warranty,the product quality under the retailer as a leader is lower than that under the manufacturer as a leader when the manufacturer provides the extended warranty.The product with the highest quality is provided by the retailer offering the extended warranty,and the product with the lowest quality is provided by the manufacturer who is in a weak position and offering the extended warranty.When the extended warranty sales channels are the same,the sales of products and extended warranties will be the maximum when the manufacturer as the leader.The party who provides the extended warranty is more profitable than the others,so providing extended warranty service is the best decision,and when the party who is in the leadership will be better.