Coordinated Policy in Multi-suppliers and One-Manufacturer System under Partially Symmetric Information

Coordinated policy was proposed in multi-Suppliers and one-manufacturer system under partially symmetric information. The model of suppliers, manufacturer and supply chain was constructed, which testified that the mismatch of supply quantity would lead to supply chain profit lessening. Necessity of coordinated policy was analyzed by comparing supply chain decision under partially symmetric information with supply chain decision under symmetric information. Then an incentive function based on penalty and bonus was introduced and a coordination policy was set up by the combined use of order quantity, bonus and penalty cost. The policies can make suppliers deliver more under the limited production capacity and reach the order quantity of manufacturer. Therefore the supply chain can be coordinated by this policy under partially symmetric information. The case proved that the coordinated policy was feasible and effective.