The supplier switching of retail enterprise

The retail enterprises try to find suppliers who provide products with lower price and good quality in their business operations. In this paper, the supplier switching of the retail enterprise is analyzed and researched. The entrant supplier's defective rate can be considered as his private information, considering the incentive compatibility constraint and the participation constraint, the retail enterprise's supplier switching model is established. And through the analysis of the objective function and the constrain conditions of the supplier switching model, the optimal switching ratio to the entrant supplier is obtained, a numerical example verify the result of the retail enterprise's switching ratio.