Research on Order Decision of Quantity Flexibility Contract under the Competition between Multiple Suppliers and Multiple Retailers

Abstract

In the supply chain system consisting of multiple suppliers and multiple retailers, in order to realize supply chain coordination, we studied the ordering decision under the quantity flexibility contract with competition between both sides. On the one hand, from the perspective of suppliers, a satisfactory production of goods for each supplier was obtained by means of a kind of interactive programmer step method. On the other hand, from the perspective of retailers, because each supplier holds a different preference attitude for different retailers, we sort retailers as preference in application of a group decision sequencing method of Markov chain. The optimal order quantity of goods for each retailer was obtained at the same time and we prove that it is Pareto optimal. Finally, we give a numerical example.