Research On Supply Chain Coordination With Contract Based On Principal-Agent Theory

The supply chain is composed of the different economic entities;these economic entities have the different optimized goals and the private information.These optimized goals are often inconsistent with the system whole optimization goal, simultaneously,the uncertainty of supply chain system is very strong,and the low efficient question as a result of the asymmetrical information also get more and more serious,so cause the achievements of entire supply chain system reduce.The effective supply chain coordination mechanism may assign the risk among the supply chain member enterprises,drives the supply chain member's enthusiasm reasonably,deals with the indefinite environment,and strengthens enterprise's cooperation,achieves the win-win aspect.The realization of supply chain coordination could affect the member enterprise's policy-making behavior and the efficiency of supply chain,thus improves supplies chain's overall achievements during enhancement own benefits of supply chain member enterprises.On the foundation of summarizes the domestic and foreign research results,the paper begins with the supply chain and supply chain management theory,studies the basic theory and the level model of supply chain coordination,and the types of supply chain coordination,analyzes supply chain coordination research frame,studies the basic theory and research frame of Principal-Agent theory,as well as the characteristic of Principal- Agent problem in the supply chain system.The Principal- Agent problems in the supply chain system mainly include:the signal transmission,the unilateral moral hazard,the reversion choice coexistent with moral hazard and both sides moral hazard.In the supply chain contract theory,the primary reasons which hindrance the supply chain coordination are double marginalization and asymmetric information.In the light of supply chain contract fundamental model research,the paper finds that sole supply chain contract is hard to realize the coordination.In order to enhance the overall achievements of supply chain system,must adopt suitable contract drive in each stage of supply chain.The paper proposes the main way to realizes supply chain coordination by utilizing Principal-Agent theory and the supply chain contract model,and analyzing primary factor that hindrance supply chain coordination.The paper constructs a supply chain system model consisted by many suppliers and retail merchants,studies supply chain coordination question under the symmetrical information and the asymmetrical information situations separately.Under the asymmetrical information situation,the supplier is the principal,the retail merchant is the agent,retail merchant's cost is the private information,the achievement targets of supply chain system will change,and concrete changes are related with supplier's expectation to private information of retail merchant.The paper designs a supply chain system contract coordination model based on the income sharing and consisted by many suppliers and retail merchants,under an asymmetrical information situation, then carries on the numerical analysis.The model takes the supply chain system overall profit distribution proportion between supplies and retail merchants as coordinated factor,and confirmed through an example.