The Supply Chain Short-run Equilibrium Research Of Downstream Manufacturing Enterprise's Integration And Outsourcing

With the globalization of economics and increasingly fierce competition of supply chain,the enterprises are facing much stronger pressure which has never emerged before, manufacturing outsourcing is developing very quickly. Manufacturing outsourcing could bring enterprises many advantages just like lower the cost, focus their core business, enhance the efficiency of operation, and lower the risk of the investment.First, the article researched short-run equilibrium problem of integration and outsourcing decision under the circumstances that in-chain competition that the supply chain is composed by one component supplier and two competing downstream manufactures and gets different equilibrium outcomes. We found that downstream manufactures'integration and outsourcing market behavior has an effect on potential rivals'entry decision, but for the whole supply chain, the effect on the overall performance is little, and only influenced the profits distribution between component supplier. Integrated downstream manufacture's integration and outsourcing decision. In the following, we studied short-run equilibrium problem of integration and outsourcing decision under the condition that chain-chain competition which the supply chain is composed by two component suppliers and two competing downstream manufactures with homogeneous product and unfixed structure. According to whether there are differences between components which component suppliers produced, we got different equilibriums. And then, discussed the effect manufacture with Integration capability's integration and outsourcing decision on rivals as well as the price which manufacture with Integration capability bought components from component suppliers. At the last, we researched short-run equilibrium problem of integration or outsourcing decision under the circumstances of chain-chain competition, which the supply chain is composed by two component suppliers and two competing downstream manufactures with heterogeneous product and fixed structure. We discussed the impact integration or outsourcing decision to the behavior, structure and performance of supply chain under different cost, as well as product substitution and market share.These results are available for supply chain enterprises in the competitive environment to develop the optimal marketing strategy reference, especially for companies outsourcing parts or made reference to the decision-making.