Abstract:
Considering the influence of sales price change on the apparel supply chain, a twoechelon sales supply chain model with single ordering is established based on game theory. Through an analysis of single contract and combined contract in the supply chain coordination, a conclusion is drawn that the composite contract is better than the single contract. With the optimal status of the whole supply chain, the single contract parameter design depends on the production cost and demand of the corporation, but it only correlates with production cost within the combined contract. With reasonable designing of parameters and wholesale price, the combined contract can coordinate the supply chain. Changes of sales price will influence the parameter design within the composite contract. In addition, privilege royalty transfer payment contributes to the coordination of the supply chain. The results are supported by an empirical study.