Research On The Relationship Of Game Theory-based Supply Chain

Supply Chain Partnership (SCP) refers to a kind of coordinated relationship between two or more independent members in the internal supply chain, to ensure the realization of a specific target or effectiveness. It is a high degree of coordination of sharing information, bearing risks, and making profits together in a certain period of time. Constructing a good SCP is to make better use of resources throughout the supply chain, so as to achieve a higher overall competitiveness of the supply chain. Game Theory is a system of knowledge on how to make decisions when the main decision-making has direct interaction and the equilibrium problem of these decisions. Its essence is the decision-making theory of players' mutual interaction of interests. It explains rational people' decision behavior in the process of game, and provides the general mathematical methods for analyzing and forecasting the contradictions and conflicts prevailing in the objective world. Because of the inherent contradictions and conflicts of SCP system, using Game Theory in SCP has become one of hot issues in Supply Chain Management research.This paper is mainly on the cooperative relations of suppliers and manufacturers, studying the application of Game Theory in Supply Chain Partnership. First of all, based on the incomplete information and limited rationality of participants in the pricing process, applying evolutionary game theory and approach, combining the latest results of limited rationality, this paper analyzes and builds the model of the supplier pricing strategy, and describes the supplier pricing problem more comprehensively and objectively by introducing the evolutionarily stable strategy and replicator dynamics. Secondly, on the basis of bargaining game model in turn, this paper analysis a bargaining Strategy between suppliers and manufacturers in negotiation. It provides operational decision-making support for the suppliers and manufacturers in the pricing competition, to ensure the interests of both sides, thus forming a strong partnership. Finally, on the basis of the analysis of the characteristics, principles and modals of the supply chain income distribution, this paper makes use of the output distribution model in the form of revenue sharing, and combines the group punishment mechanism with this model,it plays a useful complement to the output distribution model in the form of revenue sharing. The introduction of group punishment mechanism, not only can solve the problem of free-rider, also can encourage the member of enterprises, promote the production enthusiasm of enterprises, thereby achieving the stability and development of supply chain system.