Game Research on Supply Chain Distribution System

The questions on agents´ goals optimization and system´s general goals realization in a simple supply chain system composed by a manufacturer and a distributor are analysed, under three kinds of game models which are the complete information static game model, the complete information dynamic game model and the cooperative game model, in this paper. The production and the order quantity are decision variable of the manufacturer and the distributor respectively. Taking the cost of the stock, the order, the transportation, the manufacture, and out of stock into consideration, we draw the final conclusion that in the above-mentioned three kinds of game models, only the third kind of game model can make the supply chain distribution system achieve the maximum profit. Furthermore, in this game model, compared with the first and the second game model, the manufacturer and the distributor obtain more as far as the maximum profit is concerned. As a result, the manufacturer and the distributor have achieved the profit balance through cooperation. Thus, both sides can reap the profit, which can guarantee the manufacturer and the distributor keep the stable cooperation. It is emphasized that only when the market demand is uncertain, are the manufacturer and the distributor willing to cooperate