Study For A Two-stage Supply Chain:Price-dependent And Mutiplicative Form Demand

The Newsboy Model and Supply Chain Management are significant projects in modern management of the economy. In this paper, we focus on two main issues: a traditional newsboy model and a supply chain with nonlinear form demand. We analyze a variety of supply chain models and contracts. Based on the previous work on supply chain contracts, we construct a supply chain contract which maximize the profit of the supplier and retailer. Mostly, we analyze and expand the two-stage supply chain.There are six sections in this paper: Section one is introduction. In which for the considered problems of the newsboy model and supply chain management, we present their motivation,significance and history.We also give our research points and innovations. Section two is the traditional newsboy model. In this section we formalize the newsboy problem into its corresponding mathematical one and get its optimal solution. Based on the newsboy model, we introduce the supply chain model in Section three, which consists of supplier and retailer. In order to study the relationship of the supplier and retailer, we introduce and analyze the supply chain contract. In Section four, we introduce the supply chain with price-dependent demand, including the addictive and multiplicative forms. In addition, we deal with the coordination problem through the profit functions of supplier and retailer. In Section five, we study a two-stage supply chain with multiplicative form demand in two situations of risk and no risk. On the one hand, I give the optimization procedure of parameters; on the other hand, I design the coordination contract. We summarize our work in Section six and plan what to do next.For two-stage supply chain with price-dependent and multiplicative form demand, we make more detailed explanation. We consider a two-stage supply chain selling a fashionable product and consisting a manufacturer and a retailer who faces a multiplicative form random demand. Considering the whole supply chain, at the very beginning of stage one, the manufacturer determines how much capacity to reserve by historical data and investigation, after some lead-time in stage two, sale season is not coming, both the manufacturer and the retailer update the demand information, the retailer then determines the order size and the selling price according to the contract. We analyze the supply chain in two cases: the centralized and decentralized. For the centralized supply chain, we begin our research from stage two and then stage one, get the optimal order quantity, selling price and reserved capacity one by one.For the decentralized supply chain, we offer a contract which coordinates the supply chain.