Analysis Of Relationship Between Supplier And Manufacturer Based On Game Theory

With the quick development of high-tech, the vehement increase of market competition and the continuous changes of customer need, traditional management model of enterprise has already displayed its weakness which can't fleet and alacritous resources to response to the quickly changing market needs, hence, the thought of horizontal integration appears. The supply chain enterprises are cooperative and competitive. Enterprises not only have to guarantee itself interest, but also have to realize the best performance of supply chain, which make the decision of enterprises very complicated. Supply chain (SC) is one complicated large-scale distribute system, Supply chain management (SCM) is a new enterprise relationship management model in nature。According to today's situation, Supply chain can't make all the member enterprise ally, is most probably the links of several need-demand relationship, between supplier and manufacturer, manufacturer and distributor, distributor and retailer. This dissertation studies the in-corporate and corporate relation between supplier and manufacturer with methods of the supply chain management model and game theory.The research is made as following:1.Based on some evidences of achievement and trend of researchers in Supply chain management and Game theory, get the main content of the paper. This dissertation defines the concept and traits of supply chain and the concepts and the spirits of supply chain management.2.This thesis states the concepts, classification, the history and the foundation of Game theory. Do feasible study on applying game theory to supply chain management. Supplier and manufacturer are cooperative and competitive. They can comprise two parties of a game , so using game theory to analyze the relationship is feasible are scientific. 3.Make a analysis of uncooperative and cooperative relationships between supplier and manufacturer, with the development of economy and technology, cooperation is inevitable choice thanks to the external competitive environment and the internal demands of the enterprise, conclude the importance of cooperation.. The analysis points out: when two parties choose cooperative, profits of each and both are bigger than those when one of them chooses uncooperative.4.Make an analysis of independent decision and cooperative decision of supplier and manufacturer based on complete information stable game theory, under cooperative decision both enterprises use low cost and get high interest. Under this condition, supplier will supply more timely and the price will be pretty good, and so make manufacturer plan implement more effective and working more efficient. Analyze the affective factors in interest function of supplier and manufacturer based on complete information unstable game theory. Under this condition one time cooperation will affect future cooperation. So supplier and manufacturer should be more foresighting.5.Bargaining model is an effective analysis tool for enterprises coordination. Once supplier and manufacturer come up to coordination they need to bargain about interest reallocation and cooperation price. So make a bargaining game model between supplier and manufacturer under incomplete information.,and get the reasonable and cooperative price, the basement of cooperation.6.In this thesis design incentive mechanism between supplier and manufacturer based on principal-agent model under complete information and incomplete information, Under complete information, manufacturer can observe the supplier's performance and make use of rewards to inspire supplier; under incomplete information, if supplier and manufacturer both dislike risk, at this moment, supplier manufacturer can get best strategy through sharing information.. So manufacturer should try to make information shared and then use less effort get more profits. So can avoid risks and issues and make cooperation last longer.