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| Research on Supply Chain Coordination Mechanism Based on Product and Extended Warranty Competition |
| TANG Hua，AI Xingzheng，ZHONG Li |
| 1. University of Electronic Science and Technology of China, Chengdu, China; 2. China Three Gorges University, Yichang, Hubei, China |
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Abstract Considering the supply chain coordination issues that both the products sold by homogeneous and heterogeneous retailers as well as their derivative extended warranty exist competition, this study constructs a two-echelon supply chain game model consisting of one manufacturer and two competing retailers to identify the impact mechanism of the two-dimensional competition between the product and the extended warranty on the supply chain performance and coordination mechanism. Besides, this study proposes a combined contract to achieve coordination of the homogeneous retailers and the heterogeneous retailers supply chains. The results show that the competition of the product and the competition of extended warranty have complementary effects. In addition, as a single contract cannot coordinate this supply chain, for the homogeneous retailers’ supply chain, it is necessary to design a coordination mechanism combining the product quantity discount and the extended warranty cost-sharing contracts; for the heterogeneous retailers’ supply chain, it is also necessary to combine the product quantity discount, the extended warranty cost-sharing, and the two-part tariff contracts to coordinate the supply chain.
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Received: 16 September 2020
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