Research On Supply Chain Decision Making And Contract Coordination Under Different Power Structure

With the rapid development of China’s economy,the traditional marketing concept centered on the enterprise can not meet the complex market environment.The buyer’s market has gradually replaced the seller’s market as the mainstream market condition,and the demand for the product has been paid more and more attention by the enterprises.With the change of the economic development and the improvement of the living standard,the consumer’s consumption concept not only pays attention to the price of the product,but also pays more attention to the difference between the price and the quality of the similar products.Therefore,the simple price war can not meet the needs of the market competition,and the enterprise must consider the price competition and the quality competition at the same time.On the basis of the decision of the competitors,the optimal decision is made to meet the needs of the enterprise operation decision under the complex competition situation.Therefore,two suppliers and one retailer are selected to study the supply chain of the participants.In the face of complex competitive environment,the multi-agent supply chain faces more complex channel power structure.As the saying goes,the channel people get the world.In the supply chain,the powerful party often occupies the dominant power of the supply chain.It occupies a greater advantage in making the decision and dominates the supply chain.The trend,such as Ford,TOYOTA and other manufacturers can affect the survival and development of the whole supply chain to a certain extent,and there are some leading supply chains in the retailer,such as WAL-MART,Carrefour and so on.There are also some large suppliers and retailers with equal strength,because they have little difference in their strength,so their rights in the supply chain are equal,such as Lenovo and Suning,Canon and Gome.Under the different power structure,the decision of the leading Party and the subordinate is first and later,which has a very important influence on the overall profit of the supply chain.Therefore,this paper,combining the game theory and the supply chain contract coordination theory,studies the decision and coordination of the supply chain members under the different power structure from the point of view of the quality and price competition.The results show that quality competition can effectively improve the quality of the product and increase the total profit of the supply chain.In the case of retailers leading and the power difference between suppliers,the supplier channel power will strengthen the positive effect of the quality competition on the quality of the product,and lead to the supplier.In the case of poor market power among suppliers,the supplier channel power will weaken the positive effect of the quality competition on the quality of the product;the price competition can improve the total profit of the supply chain,but when the supplier is leading and there is a bad influence among the suppliers,the total supply chain will increase and then decrease.The supplier channel power will weaken the negative impact of the price competition on the wholesale price of the product in the case of supplier dominance and the poor market power among suppliers.When there is a poor market power in the two suppliers,the larger suppliers in the market can gain more profits,but it will also cause the total profit of the supply chain.The loss of the profit of the retailer and the smaller supplier of the market forces hinders the new small enterprises from entering the market and is not conducive to the long-term development;the overall profit of the supply chain and the members of the supply chain under various circumstances is compared,and the profits of the supply chain are most balanced under the undominant situation.