Supply Chain Profit-sharing Contract Research Based On Strategic Customer Behavior

When making purchasing decisions, customers will always compare different options and choose the best one to maximize their utilities. Such customer behavior is referred to as Strategic Customer Behavior. However, in the coordination of the supply chain literature, strategic customer behavior is overlooked. Two aspects of supply chain coordination problem are investigated based on strategic customer behavior.(1)This paper considers the strategic consumer behavior in decentralized supply chain. The supply chain consists of a vendor and a number of customers who are strategic and risk preferences. The pricing and inventory control problem is investigated when considering customer strategic behavior and risk attitude. It is assumed that it is a kind of seasonal product, if unsold at the end of selling season the product will be sold at the salvage price. The strategic customers determine the optimal time point to purchase aiming at expected utility maximization. The retailer chooses the optimal quantity and price aiming at expected revenue maximization. And the rational expectation equilibrium between the retailer and strategic customers is also obtained. The existence and unique ness of the rational expectation equilibrium solution is analyzed, as well as the relation between the rational expectation equilibrium solution and the risk attitude of the customers.(2)This paper considers the strategic consumer behavior in centralized supply chains. The supply chain consists of a manufacture, a vendor and a number of customers who are strategic. Supply chain profit-sharing contract is studied based on strategic customer behavior.