Research On Three-level Supply Chain Coordination Of TPL Supplier Participation

This paper used the Game Theory to research how to coordinate a kind of supply chain, which is made up of a dominant manufacturer,a TPL supplier and some retailers when the market demand is a linear function and relies on price.First,analyzed and compared the node enterprises' decision models and profits in three situations:no coordination,partly coordination and all coordination based on symmetric information and asymmetric information.The results as follow:(1) In the situation of no coordination,Pareto improvement can be achieved through reasonable apportionment of logistics service expenses between manufacturer and retailers.And the manufacturer must chose proper amount of retailer in order to balance each party's benefit.(2) when cost is private information,the manufacturer is apt to open its cost information. While the TPL supplier and retailers are apt to provide a false cost higher than the true one.(3) In the situations of partly coordination,system's profit is the highest when the manufacturer and the TPL supplier make an alliance.(4) No matter information is symmetric or asymmetric,supply chain's profit of partly coordination is more than the one of no coordination,but less than the one of all coordination. However,it can not ensure all of the enterprises' profits increase.In order to promote the manufacturer,TPL supplier and retailers to participate in overall coordination,some ways of profit distribution were laid out.Finally,verified the validity of the models and ways of profit distribution through examples.