Abstract:

To reflect the coordination in the supply chain of perishable products with free competition, a single manufacturer and two retailers supply chain model facing the stochastic demand in relation with different prices and the return mechanism is established. The analysis shows that the profit of total supply chain without competition is obviously fewer than that with competition, and through the special linear model the paper employs the result, also gives the optimal price and order quantity in the coordination of the supply chain.

Key words: supply chain coordination; stochastic demand; return mechanism; competition