Research On The Multi-stage Dynamic Game Between Upstream And Downstream In The Supply Chain

Every enterprise in the supply chain would participate in the supply chain management.Each member's decisions will affect other members in the supply chain and its own future decisions.Dynamic game between the upstream and downstream in the supply chain a very important role in improving its own profit and reducing all kinds of costs in real life.However,the perspective of the upstream and downstream enterprises thinking solutions is different from their own interests,and the decisions that everyone made will not be the same.Centralized decision-making supply chain members would also ensure his own profit.Supplier would adjust the price.The buyer would adjust the order quantity in the multi-stage games.We need to consider the influence from decisions made by the members of the supply chain for each other,use scientific methods of game theory,and find out the equilibrium solutions of all the members in the supply chain in the whole process of the game.Therefore,we can ensure the optimal expected profits,which has a certain guiding significance in the real life.In the process of game between upstream and downstream in the supply chain,there are many similarities and differences between customers and retailers as the buyers.The goal of the customers is to buy the goods on the price that they can accept,and the retailer is the ultimate goal to improve their own profits.In this paper,we make the customers and retailers as buyers,and the corresponding multi-stage dynamic game process is studied.Firstly,we study the games that customers are the buyer.This part is divided into two scenarios that all myopic customers and a certain proportion of strategic customers,and the corresponding equilibrium solutions are solved respectively.We discusses the change of the seller price scheme,and the relationship between the number of game process and the discussion of the stage of the game.Then this paper studies the game process that the retailers as the buyer,we establish a corresponding multi-stage game model,and work out the equilibrium solution,and verify the change in price of the seller and the buyer for the number of orders.Moreover,the profit of both members is affected by the stage of the game the number.Finally,a numerical example is used to calculate all the equilibrium solutions of the article,verify the characteristics and properties of the scheme,and further discuss the equilibrium decision-making method of supply chain members in every scenario.With aiming at the game processes those different buyers participates in supply chain,we establish the corresponding mathematical models respectively.The equilibrium solution obtained by solving the problem and its characteristics will provide some guidance and reference for the upstream and downstream enterprises that are facing similar environment in the supply chain.