Research On Supply Chain Network Equilibrium Of Overconfident Retailers

Nowdays,Commercial competition pattern is no longer between enterprises and enterprises fight alone,but into the complicated competition between supply chain model. Therefore,the supply chain network model become the common decision-making model in the field of production, operation and transportation.And the reaserch of supply chain network has become the focus of management.Most of the researches are based on network members’ completely rational behavior, however, a large number of empirical studies show that people generally exist overconfidence behavior in reality, and the reaserches of network equilibrium based on completely rational behavior has significant limitations.Therefore, in order to make the research more practical significance, this paper considers the overconfidence behavior into the supply chain network equilibrium model. This paper studies the supply chain network equilibrium problem with the retailers’ behavior being overconfidence in random demand market environment, analysis the effect of retailers’ overconfidence behavior to their own order decisions, manufacturers supply decisions and the entire supply chain network equilibrium.The results of this paper show that the reaserch can explain the network members’ decision-making behavior very well.When bad market information appears, the greater the overconfidence degree, the less the product quantity will be and the lower the equilibrium order price will be;When good market information appears, the greater the overconfidence degree,the more the product quantity will be and the higher the equilibrium order price will be.