Decentralized purchasing, supply

Strategic alliance supply chain can coordinate and control the supply, demand, price and other information of the node enterprises in the supply chain. However, decentralized control supply chain cannot do that. Therefore, for every node enterprise in the decentralized control supply chain, it is hard to accurately acquire the market supply price information of raw materials and market demand price information of finished products. The decision-maker of the enterprises can nevertheless obtain the probability distribution function of the changes of the market prices of raw materials and finished products by analyzing the purchasing prices, sale prices and other historical data. That is to say, two uncertain parameters— market supply price of raw materials and market demand price of finished products can be described by random variables. 

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