Benefit mechanism designing: For coordinating three stages supply chain

Coordination mechanism based on the three levels of supply chain consists of a single vendor, a single manufacturer and a single seller. Three levels of supply chain are used firstly for the coordination of supply chain by quantitative method. The strategies to fix price are discussed using Game theory, as a single vendor, a single manufacturer and a single sellers are in the cooperation of the independent decision-making and cooperation of the collective decisions. The interests of two strategies for the enterprises are also involved. The result shows that the integrated interest of the supply chain under the cooperation case is larger than that in the supply chain of not cooperation case. The supply chain node cooperation between enterprises is superior than not cooperation in enterprises own interests, as distributive factors must be taken from some range. Core businesses could choose appropriate distributive factors in order to reach the harmony of interest and get the overall stability of high interest, which depends on the power of bargaining.