Research on the Function of the Relationship between Retailers and Suppliers in the Business Supply Chain

Abstract: Under supply chain environment, because the retailer directly faces to the retail-market, so it is easy to grasp the information of customer's demand for the retailer, as a result, the balance of power between suppliers and retailers is shifting. The imbalance rights between suppliers and retailers will cause intense conflicts. The low efficiency and unstable relations between suppliers and retailers can not match the requirement of the market competition, so the non-cooperative game must become cooperative game. The new supply chain that more strengthens cooperation among the supply chain members has more life force and competitive advantages. Retailers and suppliers should in fairness and trust to establish a strategic alliance in order to realize the maximum profits of the supply chain and reach "double win" stabilization cooperation.This paper is divided into four chapters to research the retailer-led supply chain game problem.The first chapter is the introduction, sums up the supply chain management and supply chain game knowledge, and then presents the content and framework of this article.The second chapter reviews the development history of game relations between retailers and suppliers. View of the current situation that retailers dominate the supply chain, unequal status of retailers and suppliers result the increasingly fierce contradiction. Analyzes the current contradiction situations and causes for conflicts between retailers and suppliers. The confrontation make the two sides will suffer. Then proposed the solution strategies that two parties, the Government and the Association should take rational view of the conflict to make the right decisions and seek survival and development of solution strategies for the relationship between retailers and suppliers. These strategies will transfer the simple game to the process of value-added supply chain value.ChapterⅢanalysis the Stackelberg game between retailers and suppliers under the symmetric information and asymmetric information both cases through establish mathematical models. The results show that in the supply chain side dominated the game both gained more profit, resulting in the supply chain profit distribution imbalance. At the same time, the game between retailers and suppliers lead the total profits of two sides are less than profit of cooperation between retailers and suppliers. Therefore, it is necessary to strengthen the cooperation between retailers and suppliers, changes both the non-cooperative game to cooperative game.Part IV based on the Chapter III proposes that strategic alliances of retailers and suppliers are the game's final development. Retailers and suppliers achieve win-win situation through the establishment of strategic alliances. Strategic alliances of retailers and suppliers Stress mutual trust and strengthen cooperation under the supply chain management thinking, in order to promote the value of value-added value chain, expanding profit margins, seek to maximize the overall interests of both sides. The strategic alliances of retailers and suppliers is a relationship between competition and cooperation, in essence, cooperative game, it can create a win-win situation…
Key words: supply chain; relationship between suppliers and retailers; cooperation