Research On The Supply Chain Profit Distribution Based On The Fairness Equilibrium And Equitable Entropy

Supply chain enterprises in creating customer value are the partners,while distributing customer value are competitors. Income distribution has been the the focal point in supply chain enterprises'cooperation and disputes, but also it is a necessary condition for supply chain's success. So establish a fair and effective mechanism for income distribution can help ensure the stability of the supply chain, achieve effective allocation of entire resources, improve supply chain efficiency. The paper research the distribution of supply chain benefits from the fair view, the aim is to clarify the factors which associated with supply chain benefits distribution.Through combination and optimization, build a new supply chain benefits distribution mechanism that will improve the traditional supply chain benefits distribution model.The supply chain definition and characteristics, the supply chain management definition and the basic idea, the supply chain design principles were presented in this paper. The supply chain profits distribution'basic principles and common methods were introduced. The recent years'domestic and international supply chain profits distribution's literature are outlined.Matthew Rabin's"fairness equilibrium"theory is applied to supply chain profit distribution, a model which based"fairness equilibrium"is established. The model's optimal solution shows that there is a positive correlation between profit distribution coefficient and fair weight, fair weight has different degrees of impact on sales, wholesale, retail price, supply chain profits and total profits, this factor must be considered when design the profit distribution plan.Fair entropy used to measure fairness in the integrated supply chain channels superprofits distribution, the fair entropy bigger, the superprofits distribute fairer. An integrated supply chain profit distribution model based on fair entropy is proposed, find out the optimal coefficients of the profit distribution, designed an integrated supply chain's optimal profit distribution plan, analysis manufacturers and retailers'importance of weight and cost on the profit distribution coefficient.