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Research on Profit Coordination of the Supply Chain in the OEM Mode

Author: ZhangBin
Tutor: LiBangYi
School: Nanjing University of Aeronautics and Astronautics
Course: Business management
Keywords: OEM Supply chain Profit distribution Game theory Revenue sharing
CLC: F273
Type: Master's thesis
Year: 2009
Downloads: 97
Quote: 0
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Abstract


OEM is a new production organization, which is the result of the international division of labor cooperation under the economical globalization. It is not only an effective way to optimize the allocation of resources, but also the inevitable result of market segmentation. Profit coordination is critical for the OEM supply chain. The distribution of benefit is directly related to the positive co-operation of enterprises in the OEM supply chain. So the distribution of interests in the OEM mode is worthy of study.This paper is mainly about the cooperation and profit coordination of the supply chain in the OEM mode. It explores better methods of the distribution of interests to make the node enterprises in the OEM supply chain achieve real benefit-sharing, risk sharing and reach Win-win end through the analysis of the OEM supply chain cooperation and conflict, as well as issues related to the distribution of benefits, so as to promote the brand and the OEM manufacturers to long-term cooperation. Base on the discussions of the basic concept, connotation, forms, origin and development of OEM, the article went on further analysis the cooperation and conflict of the OEM supply chain, given the conditions of the OEM cooperation model, and to quantify and analyze the model. Summed up the impact factors of distribution of benefits in the OEM supply chain, and emphasize a reasonable mechanism of the profit coordination is very important for the supply chain to operate efficiently and stably.Finally, this thesis adopts Stackelberg model based on game theory, uses the chamberlain’s model to improve it, and then proves the new mode can improve the whole supply chain to maximize profits, form a win-win cooperation situation and achieve a reasonable distribution coefficient range. This paper provides reference of the interests of the allocation for the enterprises and proves that the model is rational and feasible by a actual case.

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