Research On Value Added Business Supply Chain Coordination Using Bi-Level Programming Model

Early in 2009, Industry and Information Ministry enacted officially 3G licenses to China Telecom, China Mobile and China Unicom, which also implies the coming of 3G era. With the rapid development of the communication services and the Internet web, the mobile Internet and mobile value-added business development will be in a new chapter.Any product and business development can not be separated from the enterprises efforts in all the supply chain nodes, so is telecommunications value-added services. On the basis of the core idea of "cooperation, win-win" of the supply chain, telecommunications, value-added business enterprises supply chain node win-win cooperation for plays a great role in the telecommunications business mobile development.This paper summarizes the development of the value-added telecom business supply chain, introduces the value-added telecom business cooperation and win-win model, and builds the value-added telecom business supply chain coordination model of the Bi-level programming using benefit-sharing contracts.Under the non-linear demand conditions, the paper studies how to make its own decision variable to get the most profit and how to price to make the own benefit the most. The division proportion is the telecommunications operators' decision-making variables. The product information fee is the decision variable. Through Bi-level programming model, we mainly discuss the game between the telecommunications operators and service providers, gives a numerical example analysis. This paper mainly includes the following four aspects: 1. On the previous study basis, a review was conducted about the supply chain management, supply chain coordination, supply chain.2. The review was conduced on the telecom value-added business, telecom value-added supply chain business structure and co-operation model, value chain model. We found that with the rapid development of telecommunications technology, telecommunications mobile value-added services become increasingly diversified, which make the value-added services supply chain structure and cooperation mode change.3. The paper analyzes the characteristics of telecommunications business supply chains, make a business supply chain abstract model and make the feasibility analysis to the mobile value-added telecommunications business bi-level programming model.4. On the previous studies of the telecommunications mobile value-added business supply chain coordination, we study the supply chain coordination under nonlinear demand.In this case, telecom operator decides the ratio and service provider decides the price of information services.The paper goes on the numerical example analysis and raise the telecommunications business supply chain coordination recommendations.