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Research on Coordination Mechanism of Two-Stage Transaction in Supply Chain

With increasingly intense competition between enterprises, the realization of advanced supply chain management has become an exquisite premise for the survival of firms. Procurement management is an important means to reduce costs and to enhance the competitive advantage. In this paper, the effect of information technology (IT) cost was considered completely, and the coordination mechanism in two-stage transaction between the members of supply chain was analyzed and compared by utilizing continuous newsvendor model, so as to quantify the effect of the Internet on supply chain relationship coordination. Finally, the validity of the model was verified through a case study.