Multi-retailers' Joint Ordering Decision With Contract Incentives Under Stochastic Distribution Demand

Traditionally,supplier and retailer in a supply chain used to make decentralized decisions for the sake of their own interest.However,the decentralized decisions tend to damage whole benefit of the supply chain.According to recent studies,centralized decisions will increase benefit of the whole supply chain and each company can gain more benefits under the centralized decisions.This thesis analyses the influences of supplier's delay payment and discounted wholesale price on retailers' ordering decisions based on the stochastic distribution demand.The result shows that the supplier is able to encourage multi-retailers to transform their independent policies into the joint policy by utilizing the two trade credit incentives,which makes the whole supply chain benefit outweighs the decentralized benefits;At the same time,it provides the supplier feasible Pareto areas of the delay payment and discounted wholesale price and in the feasible Pareto areas,the supplier can choose the better trade credit incentive for the sake of its own which improves all the benefits of supplier and retailers.Finally,the thesis validates that the relationship between the area of Pareto and the number of the retailers,then the result shows that the feasible Pareto areas will become shorter as the number of retailers becomes larger and vice versa.