The Study Of Coordinated Order Under Several Situations In Supply Chain

With the accelerating process of economic integration and rapid change of market demand, it is becoming increasingly important to research the management of supply chain. Especially, the study on supply chain coordination is drawing enormous attention of many researchers.The concept of supply chain coordination was brought into being very early. Our research on coordination between multi-echelon inventory and sales has made remarkable progress since Clark and Scraf firstly put forward their ideas on this topic in 1960s. This article is to discuss coordination order on supply chain in three different conditions, which are presented detail as follows:Firstly, supply chain coordination under symmetrical information condition. The building of profit models for coordination supply chain and non-coordination supply chain and comparison of overall system profit under the two conditions are to come to a conclude that the total system profit under coordination condition is larger than under non-coordination condition. Furthermore, it also brings in the approach regarding how to use quantity discount to make members existing on the supply chain voluntarily embrace coordination order.Secondly, supply chain coordination under asymmetrical information condition. The known studies on coordination order of supply chain were normally based on a premise: information about product demand and cost in producing related sectors between buyers and manufacturers is symmetrical. As a fact, it is more often to be asymmetrical in real life. Manufacturers and buyers tend to purposely cover up some useful information in order to benefit more. This research on coordination order in supply chain is presented on the premises that demand information and cost information are asymmetrical. With analyzing the already built profit models, a proper solution is to figured out about how coordination can rule out the possibility that members on supply chain keep their held information untold, even under asymmetrical information situation. Through this effort, information will be shared and optimal profit of supply chain can be gained.Thirdly, supply chain coordination under unstable situation. Nowadays, all walks of life are more dependent on each other than ever with the rapid growth of economy. Therefore, every unexpected incident can cause an uncertainty to the society, which will then generate impacts on product sales. In this part, a profit model will be made concerning the coordination order between several competing retailers and a manufacturer and also an assumption will be introduced that every other retailer will be influenced by the result of one of the several retailers being caused disruption because of the mentioned unexpected incident. The uncertainty produced impacts on production and sales can thus be overcome.The above research is the extension to supply chain coordination and the enrichment to the application scope of supply chain coordination. As a result, actual production and sales can be based on more substantial theories.