Supply chain contract of water resources allocation and dispatch in East-Route of South-to-North Water Transfer Project

Supply chain contract of water resources allocation and dispatch in East-Route of South-to-North Water Transfer Project is studied by means of applying supply chain to water resources allocation and dispatch in East-Route of South-to-North Water Transfer Project. The paper analyzes the differences between this contract and a general supply chain contract; hypothesizes and analyzes this contract particularity (the limitation of water resources and efficiency). With the gradual improvement of water price under the market economy, the paper focuses on building up a supply and demand contract based on the theory of principal-agent and designing an effectively incentive contract to realize the expectation gain maximum. According to the concept of "communication and coordination" instead of "optimization by pure technology", it emphasizes relatively efficient allocation. Finally it discusses the incentive mechanism importance by price, credit and information.