A Game Analysis of Wholesale Contract Incentive Within Supply Chain Based on the Drugs Safety Respon

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  Applying the basic idea of game thoery, the essay studies on the wholesale price contract incentive of distributor-oriented supply chain based on the drugs safety responsibility.The results show that: Supply chain system will reach competition equilibrium when manufactures use marginal cost as wholesale price.At this moment, manufacturers have no profit, profit of class g (b) distributors equals that of class g (b) manufacturer-retailer alliance, and optimal pricing that makes maximum profit of class g (b) distributors just is the optimal pricing which offers the maximum profit of class g (b) manufacturer-retailer alliance.Distributors can adjust the value of profit distribution factor to reach the proper result satisfied by both manufacturers and themselves, so as to effectively encourage manufacturers to use marginal cost as wholesale price.
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