Consider A Supply Chain Coordination Contract Study Of Out-of-stock And Shortfall Effects

Uncertainty in market demand,out of stock losses and backlog of inventory can have a negative impact on the enterprise,in which case,a reasonable order strategy has become the focus of many supply chain enterprises.In general,out of stock can lead to a series of losses(such as the cost of out of stock,replenishment of the additional costs,etc).However,in the real economic activities,some loyal consumers with preference for some brand goods,in the case of out of stock they are willing to continue to wait.Sales scene in short supply will stimulate the desire of potential consumers.Oppositely,the backlog of surplus inventory will make consumers think that the goods are not selling well.The phenomenon of oversupply is not only a waste of resources,but also the loss of part of the consumer groups,so that they are more willing to choose out of stock products which are in good sale.So,this article is on the basis of analyzing backlogging and shortage effect deeply.According to Master-slave game theory,This article establishes a related supply chain coordination contract model composed of a supplier and a retailer.And proposes the corresponding supply chain contract coordination mechanism to achieve the overall optimal supply chain system and corporate win-win,which contributes to providing scientific and effective guidance advice for suppliers to make wholesale prices and retailers to adjust their ordering strategies.Therefore,the research significance of this paper is as follows:Theoretically,this paper focuses on the economic benefits of backlogging and shortage effect.From the perspective of supply chain coordination,exploring supply chain order coordination problem.And the situation of supply chain coordination for two-stage iterative product with backlogging under non-stationary stochastic demand is further analyzed,which is conducive to enriching the theoretical system in this field;Practically,providing reference for retail enterprises to develop order strategies under different stocking degree,which contribute to the improvement of business efficiency and economic growth.Firstly,this paper studies the problem of single-cycle supply chain coordination problem with backlogging and shortage effect.The supplier offers two orders to the retailer,both before the sales season and at the end of the sales season,then based on Master-slave game theory,wholesale price contract model is established.Research shows that:wholesale price contracts can achieve supply chain coordination in the case of backlogging,including weak shortage effect,and it can realize the distribution of profits between the supplier and the retailer in a certain range.And the optimal ordering strategy is to order at the beginning of the sales season and make some replenishment at the end of the sales season;Revenue sharing contracts can achieve supply chain coordination and realize the distribution of profits of system at random instead of wholesale price contracts in the case of medium shortage effect.And the optimal ordering strategy is not ordered at the beginning of the sales season,and make a large order at the end of the sales season;The wholesale price contract not only enables supply chain coordination,but also distributes system profits at random in the case of strong shortage effect,the optimal order strategy is similar to medium shortage effect.Secondly,this paper studies the problem of supply chain coordination for two-stage iterative product with backlogging under non-stationary stochastic demand.Considering the market demand is non-stationary,random,assuming that the first phase of sales has a direct impact on the second phase of market demand,the following important conclusions are drew:When the coefficient of backlogging becomes larger,the retailer should appropriately reduce the number of orders in the first stage,increase the number of second-stage subscriptions,the total amount of orders increased and the profitability of the supply chain system improved;When the wholesale price is equal to the cost of production,and the proportion of revenue sharing and cost sharing are equal,combined with revenue sharing and cost sharing of the contract can achieve a perfect win-win outcome,while the system can achieve any distribution of profits.At last,through the above research contents and results,it provides rationalization suggestions for how to formulate the optimal order strategy for the enterprises to have backlogging and shortage effect.At the same time,the papaer puts forward the limitations of the content of this article,and prospects for the future academic exploration.