Research On Procurement Profit And Incentive Of Metallurgical Processing Enterprises Based On Game Theory

With the increasingly fierce competition in the metallurgical processing market,processing enterprises gradually realize the importance of the purchasing procure.Scientific and effective management of the companies is a crucial for reducing the costs,increasing the profitability and improving the efficiency of purchasing,which will further enhance the core competitiveness of enterprises efficiently.However,most of the metallurgical processing enterprises didn’t conduct researches on the strategy between the enterprise and the supplier by placing the procurement work in a systematic way.It is precisely based on the information asymmetry between the metallurgical processing enterprises and the suppliers.This study conduct related issues on this.This study mainly selects metallurgy products with strong product homogeneity and large market fluctuations as the research objects and focus on how to measure the reasonable commission in the indirect procurement,how to avoid the risk in direct procurement considering information asymmetry and how to conduct moral hazard control.First of all,because of information asymmetry,the demand side often bears the supply risk caused by information asymmetry and the research of procurement risk and supplier selection has been widely concerned in recent years.In this paper,the current domestic and foreign research on supplier selection and risk aversion under asymmetric information is expounded.Also the generation of game theory and principal-agent theory and related research are introduced.In order to avoid the risks brought by asymmetric procurement information more practically,this paper mainly analyzes two kinds of procurement modes commonly used in metallurgical enterprises.Secondly,to avoid the risk coming from asymmetric information practically,this paper makes analysis on the two procurement model enterprises usually use-Direct purchase and commissioned procurement.Regard to the question how to effectively stimulate suppliers’ compliance enthusiasm and avoid adverse selection in these two procurement,this paper uses mathematical models to analyze the characteristics of suppliers under the information symmetrical environment and information asymmetryenvironment,and discusses how the enterprises use their own commissions or additional investment to achieve the supplier’s full implementation of the contract and maximize the profit of the processing enterprise in two cases.At the same time,the relevant conclusions are simulated and the relevant necessary factors are given opinions and suggestions.Finally,in order to prevent the appearance of moral hazard risk after the procurement agreement reached,this article adopts the explicit and implicit incentive methods to control and analyze the enterprises and suppliers under asymmetric information condition and by using mathematical model as research tool,the study also conduct a detailed discussion on how to reduce moral hazard.