Research On Srategic Inventories Decision Of Company A Under Stategic Consumption

In the economic society,the fundamental purpose of the enterprise is to make a profit.The profit of the company is determined by the sales and cost of the company.Therefore,the amount of customer demand and the size of the wholesale price provided by the upstream supplier will have a significant impact on the profit of the company.However,as the economic market continues to change,suppliers and customers become more sophisticated.Especially for monopolistic suppliers,it can use its own monopoly position to maliciously raise prices for its customers,and its customers can only be forced to accept to ensure that their operations are not interrupted,and the cost of enterprises has increased significantly.The profit is damaged.In addition,customers are becoming more and more savvy.Customers have come to expect that companies will lower their retail prices later in sales,through past buying experience and information they receive from the web.Therefore,some customers may choose to postpone the purchase in order to wait for the company to cut prices,which will lead to lower profits.In this case,companies need to take certain measures to reverse the unfavorable situation in this process.Based on the above problems,this paper optimizes and improves the decision-making of retailers by using game theory and optimal profits..Firstly,the game between consumers and company A is analyzed,and the demand function of consumers when short-sighted consumers and strategic consumers are present in the market faced by company A is studied.Analysis of the different considerations of the two consumer purchase decisions can be found: for short-sighted consumers,the consumer will only produce the purchase behavior when the current valuation of the product is greater than the price of the product,ie,the utility is greater than zero;The strategic consumer compares the utility of the product in two cycles to determine which cycle to purchase.Through the above analysis using consumer utility theory,we can get the consumer's demand function in two stages.Then,focus on the game between the manufacturer and the company A.After considering adding the strategic inventory,the manufacturer provides the wholesale price contract to the retailer.After the retailer accepts the contract,the decision is made,the demand is realized,and the parties obtain the income.After adding the consumer's two-stage demand function,using the inverse induction method to derive the profit function of the retailer and the manufacturer respectively,the relationship between each parameter can be obtained,and the retailer's strategy in the first period is analyzed.Inventories have a significant impact on the manufacturer's second-phase wholesale price and the second-phase retail price.In addition,the proportion of strategic customers also affects the pricing of manufacturers and retailers.Finally,a comparative analysis considers the existence of strategic inventory and the proportion of strategic customers in the three cases of retailers and manufacturers' profit margins to study the impact of strategic customers and strategic inventory on manufacturers and retailers' profits.Research shows that strategic inventory is a weapon for Company A to deal with the threat of upstream manufacturers raising the second-cycle wholesale price,but in most cases it is more favorable to manufacturers.In addition,it can be found that when retailers refer to strategic inventory,the greater the proportion of strategic customers,the higher the profit of retailers,and the opposite is true for manufacturers.