Research on Procurement Strategy under Unreliable Supply

• 1、College of Management and Economics, Tianjin University, Tianjin P.R. 300072

Abstract： This thesis studies procurement strategies at the risk of supplying quantity uncertainty. Making centralization decision as benchmark, we compare decisions in Stackelberg Model and in Nash Bargaining. As retailer scales up and brand builds and develops, it dominates in the supply chain. Different from the traditional Stackelberg Model in which supplier is the leader, buyer is leader in our model and achieves it by announcing the potential maximal order quantity and setting order sensitivity parameter of order quantity to the supplier’s wholesale price.This thesis assumes that the supplying reliability can be improved by investing in effort, which can influence the unit cost of production. Nowadays upstream and downstream enterprises tend to cooperate closely because the competence in ultimate markets more and more depends on the performance of the whole supply chain. We consider the situation in which the buyer invest in effort and compare it with supplier investing.

Keywords： Supply Risk Quantity Uncertainty Stackelberg Model Nash Bargaining Effort