Supply Chain Coordination Issues

Supply chain is an enterprise network which is made of many independently economic entities.The members of supply chain always have different goals and own different private information as working together,there inevitably arise conflicts of interest and occur moral hazards,which make the performance of the supply chain decline,the profit of the supply chain decrease,and ultimately the whole supply chain being in a state of maladjustment.It is the core of supply chain management to coordinate the material flow,information flow,and financial flow between enterprises for improving the competitive power of whole supply chain.The thesis summarizes the research actuality of coordination based on contract designing and points out the main problems of supply chain coordination with contracts and deficiency of prior research.Then it introduces the research background,meaning, methods and the thesis architect,and anal sizes the obstacles,coordination modes,and assorted method of supply chain coordination are.Contract designing under information asymmetry condition has became a new hotspot problem in supply chain coordination field.Based on the introduction to theoretic foundation(Principal-Agent theory),In a one-manufacturer-one-retailer supply chain,the optimal revenue sharing policy is given by using principal-agent models when the production cost is private information and retailer is a leader and supplier is a follower. Because of information asymmetry,the optimal policy just can make the supply chain obtain approximate coordination and the efficiency of the supply Chain reduces.In a one-supplier-one-retailer supply chain facing stochastic sales effort dependent demand,it was proved that supply chain coordination can not be achieved by using traditional revenue sharing contract or buy back contract when retailer is a leader and supplier is a follower.To solve this problem,revenue sharing contract and buy buck contract based on sales effort cost sharing were advanced.And they were testified to be a proper solution to this problem.Finally,a numerical example was given to illustrate the models and the solution process.