Supply Chain Cooperation Based Warranty Optimization

The game of warranty service and retail prices between the supplier and manufacture was analyzed from the point of supply chain. The system profit with no cooperation between the retailer and the manufacture was less than that with centralized decision. A cooperation strategy was proposed. Through this strategy, the profit of the whole system is the same as that of centralized decision. What’s more, the profits of both the retailer and the manufacture are not less than that of decentralized condition.