Research On Supply Chain Cost Management Based On Principal-Agent Relationship

With the development of global economics integrative, marketing competition is highly more and more. Supply chain management model replaced traditional management model by single enterprise. The appearance of supply chain management made the marketing competition changed from single enterprise to supply chain. The effective supply chain not only supplies the greatest service, but also keeps the most reasonable cost. Only by the management of the whole supply chain optimize the supply chain cost, so it is the keystone and difficulty of the enterprise cost management in the future, that how to integrate the supply chain management and cost management how to management supply chain effectively. Now, supply chain management has made many achievements and the theory of principal-agent has been introduced to supply chain management, but there is not a model to measure the supply chain cost. The article tries to make a model of supply chain cost based on principal-agent relationship, in order to make a farther study and discussion about supply chain cost management.The article includes six chapters. The preface introduces the background and meanings of the research. Chapter two discusses the production and the developments of supply chain and supply chain management. It introduces the supply chain management, basic methods, the study actuality and shortage. Chapter three expounds the basic model of principal-agent, then points out the problem of principal-agent and discusses the feasibility of combining the principal-agent and supply chain cost management. Chapter four discusses the basic thought of target cost management of supply chain and the target cost management based on activity. Chapter five makes a supply chain cost model based on principal-agent and activity combination models. The last chapter makes a conclusion of the study, analyses the shortage of the study and points out the future study direction.The article establishes a model of supply chain cost management based on principal-agent relationship. The study stresses on the supply chain transaction costing and realizes the activity cost management using of the activity combination models in order to achieve the object of supply chain cost management. The study will make a great impel to supply chain cost management.