Research On Supply Chain Operation Optimization And Coordination Based On Prepayment

With the development of the times and the progress of science and technology,the application of commercial credit in real life is more and more extensive,the advance payment and price discount are widely applied to the transaction between suppliers and distributors.Besides,the decision makers often have the characteristics of risk aversion and reciprocity preference.However,scholars research on supply chain is mainly focused on commercial credit which is stress on deferred payment and the coordination of the supply chain decision makers who have the behavior preference.In the model,we analyze the optimal order quantity,the sales prices of the seller and the optimal order multiplier and discount rate of the suppler in the presence of advance payment and price discount or not.After giving the method of solving the optimal decision variables under joint decision,the benefit coordination mechanism based on revenue sharing is introduced to coordinate the interests of the members of the supply chain.Then,the paper construct the utility model by the introduction of risk aversion and reciprocal preference factors,analysis the prepayment time,risk aversion and reciprocal preference by solving the optimal decision variables of the interaction,and use numerical analysis to illustrate the decision variables of different preference factor sensitivity.Study found that,with the consumer price sensitivity larger in a decentralized decision making model,the retailers optimal retail price and the optimal order quantity decreases,the suppliers discount rate increases and the optimal profit of retailers and suppliers is reduced;in a centralized decision-making model,the optimal retail price decreases and the optimal order quantity increase.On the other hand,the optimal wholesale price is fixed when the retailer have reciprocal preferences and the supplier is a complete risk aversion decider,the optimal retail price is affected by the prepayment time;the optimal wholesale price and retail price are independent with reciprocal preferences when the retailer is a complete risk aversion decider.However,the supplier's risk aversion will affect the wholesale price and retail price.