Theoretical Analysis on the Pricing and Advertising Coordination of Multi Retailer Supply Chain from the Perspectives of Common Interest Maximization

Abstract

With the arrival of global economic integration, the enterprise gradually realized the joint and downstream enterprises form a complementary advantage on its importance to enhance the overall competitiveness of the supply chain. To deal with the corresponding challenges, in this paper, we conduct research on pricing and the advertising coordination of multi retailer supply chain from the general perspectives of common interest maximization. For the two stage supply chain consisting of a single manufacturer and single retailer as the background, study retailers to establish online channel and manufacturers to establish the online channel and applicable condition, the difference between two kinds of the channel model and double channel of supply chain coordination mechanism. The core idea of supply chain management is focus on supply chain node enterprise specializing in their core business, and outsources non-core business to other enterprises, so as to achieve supply chain of all enterprises focus on their good at business. Our research optimizes the traditional game theory framework to achieve the better model for the issues. The experimental analysis verifies the feasibility and the effectiveness of our approach compared with the others.