A Coordination Mechanism For Complex Products Supply Chain Under Different Supply Modes

With the popularization of global procurement and the fierce market competition,the main manufacturer in the supply chain of complex products have gradually begun to pay attention to issues such as production delay and capital occupation due to inconsistent delivery time of component suppliers.In addition to the uncontrollable factors existing in the actual production and transportation process,the uncertainty is existed mainly because the main manufacturer cannot control the decision of each supplier's production start time,since both members have overlooked the overall efficiency of the supply chain when pursuing the maximization of their own interests.Based on the above background and relevant literature,two-supplier one-manufacturer game models of complex products supply chain under different supply modes are established.In these models,the suppliers' production time is regarded as an uncertain random variable,and the time value of money and the impact of payment timing are considered.Theoretical methods such as mathematics,economics and game theory are used to analyze decisions of supply chain members as well as help find the coordination mechanisms,under which the individual goals of suppliers will be in line with the overall supply chain's goal,ultimately achieving a win-win cooperation.In this paper,we find that when the manufacturer faces two suppliers using different supply modes(push and pull),the supply chain coordination won't be achieved simply by delaying their payment timing.But if the manufacturer would set a specific delivery schedule and an absence punishment contract,the supplier's decision of the production start time will reach system optimal.The same coordination mechanism can also be used when the two suppliers both use the pull supply mode,but the main manufacturer must set appropriate delay penalty for the two suppliers respectively.Finally,the numerical simulation results show that in the push and pull supply model,the component purchase price and the delay penalty can significantly affect the distribution of the supply chain profits;the overall profits of the supply chain can be improved by reducing the mean and variance of the supplier's production time.