Optimal Input Decision Consider Commitment Order Contract Under Yield And Demand Uncertainty

In various industries,the uncertainty of yield and demand is often the main reason for the low efficiency of supply chain.In order to solve the negative influence of yield and demand uncertainty,the paper discusses the two members of supply chain how to make optimal decision when facing uncertainty and how their profit would be influenced by the uncertain factors.Under the background of yield and demand uncertainty,first of all,the paper constructs the two-level supply chain consisting of a supplier and retailer in a basic model and then discusses the decisions and profits of supplier and retailer under centralized and decentralized supply situation.Then introducing the pre-order commitment contract based on the decentralized of the basic model in which the retailer assured the supplier that a certain amount of the product would be ordered before the sales season,this paper discusses the supply chain decision model under the different wholesale prices in the pre-season and sales season,and then finds that pre-order commitment contract affects supply chain differently when wholesale price are different before and after the sales season.After the numerical analysis,the paper found that this contract can achieve the pareto improvement and improve the overall performance of the supply chain as well.Finally,the penalty factor is introduced in this paper,which means that if the supplier fails to meet the retailer's ordering demand,the supplier will compensate the retailer for a certain amount.In the final numerical analysis,the paper also discusses the different effects of commitment contract on optimal decision and profit of supply chain members under different penalty factors,and then explores the win-win situation of supply chain members.