A Study On Coordination Problems Of A Two-Tier Supply Chain Led By Upstream Suppliers

The research is supported by the National Natural Science Foundation (grant number:70471045):supply chain coordination and quantity discount research based on stochastic demand and asymmetric information.One of the important parts of SCM is to coordinate various links of a supply chain (SC), because it is a typical system and needs to be coordinated. Because coordination has been viewed as an important means of SC's firmness and operation, the problem how to coordinate the supply chain has been attracted broad attention of academia. Analysis and study on coordination in SCM are of great significance in theory and practice.First, we summed up some research results about the supply chain management and coordination. On the basis of the starting point of this issue, we proposed content and structure of the research, while maintaining the innovative research results.In the next section, we introduced the theoretical basis of supply chain management and the development process, providing a foundation on the research for the following topics.To the third part, we focused on the establishment of two-tier supply chain coordination from another point. We know that in many of the leading suppliers of supply chain coordination models, supplier gave a cooperative strategy to incent buyers to change the original order met several times to the cooperation. These models focus on the optimal initial lot-sizing order of the buyers, not the supplier's original supply, and suppliers themselves are not aware of this. This paper created a coordination model of cooperation from another point, namely, based on the model of the supplier's optimal to achieve coordination.Finally, we will extend the model to two buyers of different cost structures in the supply chain, and arrived at some useful conclusions.