Dual Supply Chains Competition And Coordination Based On Differentiation And Service

Nowadays, with the market turning from seller’s market to buyer’s market, the demandsof consumers increasingly tend to be more individual, differentiate and dynamic. Whethermanufacturers take the forward integration strategy, or adopt decentralized supply chain, andthe members of the supply chain under different structure how to price products to realizeequilibrium are both worth exploring. In order to make the supply chain members of the localbehavior is consistent with the optimal strategy of supply chain system, the appropriatecoordination mechanism must be designed to make it come to an agreement of the distributionof profit. Product heterogeneity or alternative to a certain extent determines also reflects theexistence of competition. So the double supply chain competition coordination mechanismbased on product differences and service has theoretical and practical significance.Based on the competition of supply chain and product difference, two overlappingsymmetric information Stackelberg game model of supply chain is set up, in which theproduct substitution degree (or competition intensity) and the service quality level of thedistributors are introduced. Assuming the deterministic demand and manufacturers’domination environment and under the symmetric information, the mode of decentralized andcentralized decision-making mechanism under supply chain competition are analysed, andNash equilibrium of the profit function of supply chains under decentralized and centralizedstructure Stackelberg game model is studied under different substitution degree ofcompetition (intensity). The optimal solution of a numerical example is obtained by usingmathematical software matlab, and additional auxiliary is obtained to understand the optimaldecision analysis.The comparative analysis of the supply chain under decentralized decision andcentralized decision price, profit, it is concluded that under the certain intensity ofcompetition, the optimal profit of supply chain under decentralized decision making is lowerthan the optimal level of centralized decision making.In the competition introducing commonly used the revenue sharing contract tocoordinate the supply chain to achieve the overall optimal decision-making, through contract to coordinate the upstream and downstream enterprises, make each enterprise on the supplychain profits are improved, which realize win-win. And revenue sharing coefficient wasdetermined to achieve pareto optimality of the double supply chain, make each member onthe supply chain profit under centralized decision making is superior to the decentralizeddecision making.Finally, this paper studies the impact of product substitution degree on the contractbetween supply chain structure and parameters, as the competition in the supply chainrevenue sharing contract coefficient established to provide certain reference, at the same time,study broadened the research scope of supply chain coordination strategy, expand theapplication fields of revenue sharing mechanism. Validation simulation in this paper, soenterprise has the certain reference value and guidance of the decision-making.