| Summary: | 碩士 === 國立東華大學 === 企業管理學系 === 95 === Abstract
Any administration goals of enterprise is to pursues their long-term existence. The most common two basic goals are cost-minimization and profit-maximization. If a enterprise wants to reach the goal of profit-maximization, optimal product-pricing is one of the important key-factors. Making a right product-pricing decision will maximize company’s profit and strengthen it’s competitiveness.
In this research, we consider a single-product two-echelon supply chain contained a single-supplier and a single-retailer. We adopt the model of Dong and Xu (2002); however, we consider that the retailer takes markup pricing as an extra decision and unit production cost of the supplier decreases as the production volume increases. We analyze the model with the situations of VMI and non-VMI, and then compare the order lot size, product-pricing, retailer’s profit, supplier’s profit and purchase price of both situations.
Based on real examples of communication equipment manufacturer and it’s buyer in Dong and Xu（2002）, our analysis shows that total profit of the supply chain will be increased by applying VMI, but the profit of the supplier will be decreased. That is, VMI is beneficial to supply chain, besides the retailer’s benefit is greater than supplier. The supplier’s inventory cost will be increased by using VMI, the increased cost with be transferred partially to the retailer by an increase of purchase price. The increase of the purchase price will also increase the sale price to end-consumer through retailer’s markup pricing strategy.
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