Optimization of supply and demand matching in supply chain coupling mechanism

Abstract

The mismatch between supply and demand caused by asymmetry of market information has long been an issue. This paper studies a two-tier supply chain model consisting of automaker and chip suppliers with unstable supply and fluctuating prices. First, an analysis is conducted on how the manufacturer’s order strategy is affected by the supplier’s wholesale price and reliability when the supplier dominates the market. Then a set of supply chain coupling mechanisms is designed to analyze its feasibility in solving the supply shortage issue. Finally, the coupling coefficient is solved to maximize the revenue of the supply chain. Theoretical analysis results show that there is a threshold point for the supplier’s effort cost coefficient, and when the effort cost coefficient exceeds the threshold point, the supply is no longer stable, and it triggers a sharp increase in supply price. This threshold point is affected by the supplier’s production cost, manufacturer’s order quantity, and asymmetry of demand information. According to simulation studies, there is always a supply chain coupling coefficient that optimizes the total benefit of the supply chain. In this coupling coefficient, the supplier’s reliability and the manufacturer’s order quantity reach the maximum. Finally, compared with vertical integration, a coupling mechanism is more advantageous in coordinating the supply chain in the field of high-end chips.