Research on equilibrium strategy of supply chain enterprises

The key issue for the supply-chain enterprises is how to realize a win-win result by means of suitable coordination. Based on both the system of supply chain composed of a single supplier, multi-suppliers and consumers and the application of the inverse demand curve of consumers and the game theory, this paper explores bow the suppliers and the manufactures can choose the optimal strategy under the cooperative and non-cooperative environments. Three research results can be concluded as follows: (1) if cooperation reaches certain degree, the supply-chain enterprises will obtain higher profits than the one in the independent decision. (2) if suppliers and manufactures make decisions independently, the equilibrium strategy of suppliers is that the supply amount of any suppliers will decrease while that of other suppliers increase. (3) when the suppliers and manufacturers make decisions independently, the supplier will obtain higher profits than the manufactures do. However, when they are cooperative, the profit for each of them depends on the negotiation ability of both sides.