Dynamic games analysis of coordination strategies in supply chains

This paper uses dynamic three-stage games model to analyze equilibrium strategy of basic supply chain on the condition of non-coordination. Subsequently, the benefit of coordination is demonstrated, including the expansion of sales scale, the reduction of price and the increase of total profit in supply chains. Generally speaking, the share with regard to newly added profit depends on the formulation of coordination strategy which is a decisive factor to profit sharing ratio of interior members in supply chain, interior transaction price and respective profit. In all, supply chain is a benefit community where coordination coexists with competition.