Pricing Decision Model And Its Analysis For Supply Chain Based On Game Theory

Recently, supply chain management has become a hot spot in academic research field. And the research methods to supply chain coordination have been shifted from single-person model to game theory framework. Game theory method can be regarded as a wise choice in systems that members have conflicting managing goals. However, the research theory's application in supply chain environment especially in reverse supply chain environment has rarely been seen in present works. Although the existing models can achieve the optimized system efficiency, such models hardly take the managing objectives'of independent interest bodies into consideration. From the point of view of modern game theory, the stability of such kind of coordination mechanism is questionable. And in practice, supply chain inefficiency usually occurs due to the objectives'conflict among system members. The above situation brings new issue to the research of supply chain management.Based on the above analysis and appraisal, I choose this topic as the research issue. After analyzing the existing two-level sole-manufacturer-to-sole-retailer model, I give the improved pricing strategy model that meets the practical need. Then based on the improved model and game theory, change the formulation of pricing strategy in supply chain management practice to fit cooperation environment. The improved model can maximize the interest of single members while meeting the basic system efficiency demand. Only in this way we can ensure the stability of cooperation, and make sure the maximum economic and social values of forward and reverse supply chain. Concrete work as follows:1. In normal supply chain environment, make the following improvements to sole-manufacturer-to-sole-retailer model (demand function is linear function):(1) Expand the sole-manufacturer-to-sole-retailer model to sole-manufacturer-to-N-retailers model. And based on the expand model, analyze the game balancing, achieve the conclusions;(2) Expand the linear demand function to exponential function under the sole-manufacturer-to-sole-retailer model. Do the corresponding game balancing analysis. Check whether the game balancing under different demand function is dependent on the form of demand function or not.2. Considering the pricing strategy in reverse supply chain, make the following improvements to the single-manufacturer-to-single-retailer model:(1) Expand the sole-manufacturer-to-sole-retailer model to sole-manufacturer-to-N-retailers model. And based on the expand model, do the game balancing analysis, achieve the conclusions;(2) Expand the sole-manufacturer-to-sole-retailer model to N-manufacturers-to-sole-retailer model. And based on the expand model, do the game balancing analysis, achieve the conclusions;(3) Expand the sole-manufacturer-to-sole-retailer model to M-manufacturers-to-N-retailers model. And based on the expand model, do the game balancing analysis, achieve the conclusions;(4) Established a three-level sole-manufacturer-to-sole-retailer-to-single-consumer model, do corresponding comparison analysis and use of incentive mechanisms.The key issue of this paper is the expansion and improvements of the two-level M-manufactures-to-N-retailers model. The model will be close to the practical reality, and will be the guidance to supply chain management practice.