Decision Research Of Medium And Small-sized Supplier Alliance Based On Game Theory

With the development of economic reform in China,small and medium-sized enterprises have become an important part of the national economy.In the context of green supply chain management,small and medium-sized suppliers are in a relatively weak position in the supply chain,with less pricing power compared to the core enterprise.In addition,due to the dual difficulties in both economy and technology,small and medium sized suppliers have caused serious environmental pollution.As a new model of enterprise cooperation,supply chain strategic alliance is an effective way to solve the existing problems of small and medium supplier development.This paper establishes a green supply chain game theory model with two suppliers and one retailer.The two suppliers produce alternative products with different level of environmental standard.The optimal decision strategy is calculated with two scenarios.Then simulation analysis is conducted to explore the critical parameters' impact on the model.The study concluded:(1)No matter whether there is a supplier alliance,the retailer prefers to choose cost-oriented products;(2)High cost reduction rate can promote the environmental degree of the whole supply chain;(3)The improving of the product competition coefficient can promote the economic development but reduce the level of environmental degree;(4)the enhance of knowledge sharing coefficient weaken the dominant position of the retailer;(5)Small and medium-sized supplier alliance is conducive to the green development of the whole supply chain,and enhance the status of small and medium-sized suppliers in the supply chain.According to the research results,suggestions are proposed for the enterprises in green supply chains.The retailer should undertake the social responsibility actively and improve the level of environmental degree of the whole supply chain.The green-oriented supplier should guide the formation of the supplier alliance and promote the knowledge sharing within the alliance.The cost-oriented supplier should actively share knowledge with partners and maintain its cost advantages.