DecisionMaking for Synergic Supply Chain

Abstract:

To explore the importance of synergic knowledge innovation to supply chain existence and development,the meanings and the characteristics of knowledge innovation in the supply chain are revealed and synergy is established as the character of knowledge innovation.Four models reflecting different levels of manufacturers’ involvement are proposed.The fourth level of involvement is defined as positive.Based on the supply chain model of one manufacturer and one supplier, and the assumption that market demand is steady,the profit functions of supplier and manufacturer are constructed respectively.Through solving the function, economic decisionmaking of manufacturer for knowledge innovation subsidiary to supplier can be obtained. And an example is given to explain the process. In the end, further research orientation is discussed.

Key words:knowledge innovation; supply chain cooperation; supply chain model; innovation investment; economic decisionmaking