The Interests Of Manufacturers And Suppliers In The Target Cost Under The Constraint Of Co-ordination Studies

With the globalization of economy, the fierce competition between supply chains has become a new trend of market competition. Supply chain management theory is paid attention to people and researched. Based on Target cost management theory and Supply chain coordination theory, this paper analysis and study the implementation of the target cost management in the supply chains and its effects for the member enterprises'relationship in supply chains coordinating, aims at achieving the goal of the whole supply chain target cost management,through the relationship between member enterprises coordinating.This paper elaborates the current in Target cost management theory and Supply chain coordination theory, analyses existing problems in practical application and current research results, and points out the importance of coordinating member enterprises'relationship in supply chain's target cost managing. In a specific supply chain, products manufacturer near the customer markets break down the product's target cost. Through the value analyzing of the product, the total target cost will be break down at the level of assembly parts degree, and analyzes the shortcomings of which method and the corresponding improvement. When manufacturers and suppliers signing assembly parts supplying contracts, the assembly parts'target cost made by manufacturers, as an important constraint condition, influences the main decision variables in contracts. The ultimate goal is to set the assembly parts'target cost made by manufacturers as supplier products'target cost and transferred that to the upstream of the supply chain.The manufacturers and suppliers'interest coordinating model, the assembly parts'target cost joined as a constraint condition, considers both the decision variables in the contract signing and the state variables of suppliers as the considering cost constraint equations. On this basis, we'll solve optimums of manufacturers'inventory cost and carrying cost restricted by the cost in the supplying process, thus get a specific solution of the manufacturers and suppliers'interest coordinating model, and analyze optimal values of the manufacturers'purchasing cost, decision variables of the contract in different target cost constraints. And according to coordinating results, analyzes and expounds the manufacturer's purchasing strategy.. According to results, we can analyze and expound manufacturers'purchasing strategies.