Research On Contract Coordination Of The Three Echelon Supply Chain Based On Risk

With the progress and development of the times,the word "supply chain" is gradually entering people's eyes.Supply chain management has gradually attracted the attention of entrepreneurs and researchers,and becomes a focus of research.The supply chain is not a simple network system.It covers suppliers,distributors and retailers and other participating members,and the relationship between the members is complicated.In such a complex environment,how to achieve supply chain coordination and improve the overall efficiency of the supply chain has become a key issue in supply chain management.The research shows that supply chain contract has some incentive and restraint function and can coordinate the participants,and supply chain members will make the best choice for the benefit of supply chain by signing a contract.In this paper,it considers the three echelon supply chain system,which is composed of supplier,distributor and retailer.If the consumer demand is stochastic,it studies how to coordinate the system in different contract combinations.Here it discusses three combinations:case 1: revenue sharing contract and buy back contract : case 2: buy back contract and option contract : case 3: revenue sharing contract and option contract.At first,it establishes three level supply chain contract model with risk neutral,and gives the optimal order quantity of supply chain and studies the coordination of the three level supply chain.Then,it analyzes the relationship between the profit of the members and the contract parameters when the supply chain is coordinated.Taking into account many uncertainties in reality,this paper introduces risk factors in the three level supply chain contract model.Assuming that retailer is risk-seeking and distributor is risk-averse,it establishes the risk preference of the three echelon supply chain contract model.It analyzes the relationship between the retailer's profit and the risk preference,and the relationship between the distributor's profit and risk aversion.Furthermore,it analyzes the coordination problem of the system,and gives the conditions when the supply chain is optimized.In recent years,all kinds of unexpected events occur frequently.The demand of the consumer is affected by its influence,then it will also affect the normal operation of the supply chain.In this paper,the model of three-level supply chain contract based on three kinds of combination of contracts is established.When the occurrence of unexpected events seriously affected the order of the original supply chain,no matter increase or reduce the order quantity,it will inevitably lead to the imbalance of the original supply chain.However,if the appropriate parameters are adjusted on the basis of the original,it can help the supply chain to solve the impact of unexpected events.Finally,the relevant conclusions are verified by numerical analysis.