Abstract: In the packaging outsourcing, in order to conclude a business, the contractor needs to bargain with the employer and to consider the risks from the random demand of customers and the random supply of the employer. Since the selling prices of both parties are private information in the bargaining, establishes a bargaining model based on Bayesian game and points out that there is an equilibrium price when the two sides reach the intention of cooperation. Then, constructing the expected profit function of the employer and the contractor in decentralized decision making, and model a Stackelberg game to get the optimal ordering and production decisions. Finally, proposing a contract combining shortage penalty and surplus purchase to coordinate the packaging outsourcing. Using the adjustment of contract parameters to achieve the purpose of coordinating packaging outsourcing decision.

Key words: outsourcing, game theory, price negotiation, contract