Proceedings of the 2013 International Conference on Advances in Social Science, Humanities, and Management

Exchange rate’s effects on optimal strategy of assembly supply chain

Authors
Chao Chen, Yong-kai Ma
Corresponding author
Chen
Keywords
assembly supply chain; exchange rate; game model
Abstract
Based on an assembly supply cha¬in consisting of multiple complementary component suppliers and one manufac-turer, we study what effects does ex-change rate have on the decision-making and profit of the enterprises in the assem-bly supply chain through constructing a game model. The results show that the manufacture’s optimal order quantity and every enterprise’s profit will increase with the increase of expected exchange rate. This illustrates the manufacturer should increase order quantity if success-fully forecast the raise of exchange rate, and all the enterprises in the supply chain will benefit from the behavior .
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