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Title: |
Research on Supply Chain Coordination Concerning a Seller’s Promotion Innovations and Demand Information Improvement |
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Source: |
International Conference on Engineering and Business Management 2012(Part 2 Enterprise Operation and Management（2）)
(pp 1154-1157)
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Author(s): |
Wei Tian, Guangxi University of Finance and Economics, Nanning, China, 530003 |
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Abstract: |
A three-stage Stackelberg game of supply chain partners about stochastic demand on perishable products was considered when a manufacturer acted as a core firm and a seller made demand information improvement and promotion innovations. The research illustrates that when the manufacturer decided on his wholesale price, he faced incentive contradictions about his expected profit and the expected profits of the supply chain. The cost sharing strategy which often used in this condition can not coordinate the supply chain though may improve the supply chain’s performance. And a compound contract of wholesale price plus fixed payment can make the seller’s decision according to the whole supply chain’ profits. So the supply chain achieves coordination, moreover the profits of the supply chain can be distributed arbitrarily between the partners.
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