The Coordination & Incentive Mechanism Design Based On Multi-channel Supply Chain

With the fast development of the network and communication technology, many enterprises make use of the channel of Internet to sale productions in order to earn more profits and get a large market share. But as the expansion of supply chain channels, any kinds of conflicts take up between Internet–channel and traditional channel.This paper on benefits coordination and encouragement research between suppliers and distributors of the multi-channel supply chain which is consist of the Internet channel and traditional distribution channel. On the basis of the analysis on the coordination and motivation theory Summary and the existence of the main issues ,this article used the knowledge of subjects, such as management, game theory and information economics, mathematical statistics and so on, to do research on multi-channel supply chain combinations for different situations coordination and motivation theory. Through the establishment of multi-channel supply chain coordination and incentive mechanism model, the parameters of the model taking into account inventory costs, inventory, sales, order quantity and other relevant factors, to analyze the multi-channel conflict and coordination problems, making the model more in line with the actual situation.Given the different need's conditions (elastic demand and uncertain demand), gets the corresponding method of the coordination to a wide range of coordination and incentive theory applied to multi-channel organic supply chain to coordinate upstream and downstream supply chain parties conflict of interest. Under the condition of elastic demand, as a result of market demand is a function of prices is a predictable amount of demand in the demand for flexibility, the coordination of manufacturers and distributors of the bonds of relationship between the prices for the transfer, which is wholesale prices. Through the analysis of different wholesale prices in the circumstances of cooperation and non-cooperation, an indication that cooperation can be achieved under the manufacturers and distributors increase profits, and increased profits are distributed in accordance with the control channel.This article focused on theoretical analysis of multi-channel supply chain coordination and incentive theory, and different market conditions were discussed, in order to attempt to build or already have a multi-channel supply chain engaged in the production and sale of enterprises with the support of theory, Hicks law to achieve. Uncertainties in market demand conditions, the article given to meet normal demand, the price in a known commodity production, the wholesale price of goods in various channels, as well as the actual sales price, the manufacturer of goods through the implementation of the remaining buy-back contract induce distributors to order more goods, so that the Pareto optimal channels.