RESEARCH ON SUSTAINABLE COLLABORATION OF THE SUPPLY CHAIN BASED ON DEMAND ELASTICITY

The stabilization of the supply chain lies on the profit distribution primarily, and most of papers study the problem from the perspective of enterprises. But it is obviously that proportions of suppliers to manufacturers are poles apart for different sorts of products, so this paper analyzes the sustainable collaboration of the supply chain based on the product's demand elasticity. Using Sprengler model, the paper puts forward the main crucial variables to sustainable collaboration. By the deduction from the mathematic model, it is concluded that the supply chain will keep stabilization only when the-profit is distributed according to a fixed ratio which is a function of the demand elastic coefficient.