scholarly journals Coordinating Contracts for Two-Echelon Supply Chain with Price and Promotional Sensitive Demand

2016 ◽  
Vol 10 (7) ◽  
pp. 132
Author(s):  
Hooman Abdollahi ◽  
Mohammad Talooni
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Profit Sharing ◽  
Promotional Effort ◽  
Revenue Sharing Contract ◽  
Pricing Decision ◽  
The Cost

<p class="zhengwen"><span lang="EN-GB">In this paper three coordinating contracts in supply chain namely (i) revenue-sharing contract (ii) cost-sharing contract (iii) profit-sharing contract are proposed for two echelon supply chain coordination perspective under promotion and price sensitive demand. In our model buyer makes the promotional decision and undertakes the promotional sales effort cost. It is shown that in decentralized channel the results are sub-optimal. It is found analytically that the revenue-sharing contract coordinates pricing decision but not promotional decision for all values of the promotional effort cost. It is also found that the cost-sharing contract fails to coordinate channel. The profit-sharing contract is demonstrated to coordinate both the pricing and the promotional decisions in the channel.</span></p>

scholarly journals Decisions and Coordination in a Capacity Sharing Supply Chain considering Production Cost Misreporting

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Daozhi Zhao ◽  
Hongshuai Han
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Production Cost ◽  
Revenue Sharing ◽  
Negative Effects ◽  
Sales Revenue ◽  
Capacity Sharing ◽  
Pricing Decision ◽  
The Game Theory ◽  
The Cost

In the manufacturing capacity sharing platform, considering the manufacturing capacity provider’s cost misreporting behavior and the collusion behavior of the platform operator, this paper built a supply chain consisting of a platform operator, a capacity provider with surplus capacity, and a manufacturer with insufficient capacity. This paper studied the influence of the cost misreporting behavior on the supply chain members’ decisions and profits. By use of the game theory, in the scenarios including the supplier misreporting to other supply chain members and the supplier colluding with the platform, the paper analyzed the optimal pricing decision, misreporting coefficient decision, and platform’s service fee decision and further compared the profits of the supply chain and its members. The results show that the capacity provider tends to overstate the production cost for gaining more profits, which exerts negative effects on profits of other members and the supply chain. Compared with the case of misreporting to both the manufacturer with insufficient capacity and the platform, the case of colluding with platform is more favorable to the profits of the manufacturer, the platform, and the supply chain, while the supplier prefers to choose the former situation. When the sales revenue-sharing proportion, cost-sharing proportion, and service fee satisfy certain conditions, the sales revenue-sharing and cost-sharing contract can avoid the capacity provider’s cost misreporting behavior and coordinate the supply chain.

scholarly journals Supply Chain Coordination under Stock- and Price-Dependent Selling Rates under Declining Market

2012 ◽  
Vol 2012 ◽  
pp. 1-14 ◽  
Author(s):  
Subrata Saha ◽  
Sambhu Das ◽  
Manjusri Basu
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Stackelberg Games ◽  
Numerical Examples ◽  
Revenue Sharing Contract ◽  
Demand Rate ◽  
Time Price

We explore coordination issues of a two-echelon supply chain, consisting of a distributor and a retailer. The effect of revenue-sharing contract mechanism is examined under stock-time-price-sensitive demand rate. First, we investigate relationships between distributor and retailer under noncooperative distributor-Stackelberg games. Then we establish analytically that revenue sharing contact is able to coordinate the system and leads to the win-win outcomes. Finally, numerical examples are presented to compare results between the different models.

Impact of carbon permit allocation rules on incentive contracts for carbon emission reduction

Kybernetes ◽  
2018 ◽  
Vol 49 (4) ◽  
pp. 1143-1167 ◽  
Author(s):  
Qinqin Li ◽  
Yujie Xiao ◽  
Yuzhuo Qiu ◽  
Xiaoling Xu ◽  
Caichun Chai
Keyword(s):  
Carbon Emissions ◽  
Cost Sharing ◽  
Emission Reduction ◽  
Revenue Sharing ◽  
Content Type ◽  
Allocation Rules ◽  
Permit Allocation ◽  
Revenue Sharing Contract ◽  
The Government ◽  
The Cost

Purpose The purpose of this paper is to examine the impact of carbon permit allocation rules (grandfathering mechanism and benchmarking mechanism) on incentive contracts provided by the retailer to encourage the manufacturer to invest more in reducing carbon emissions. Design/methodology/approach The authors consider a two-echelon supply chain in which the retailer offers three contracts (wholesale price contract, cost-sharing contract and revenue-sharing contract) to the manufacturer. Based on the two carbon permit allocation rules, i.e. grandfathering mechanism and benchmarking mechanism, six scenarios are examined. The optimal price and carbon emission reduction decisions and members’ equilibrium profits under six scenarios are analyzed and compared. Findings The results suggest that the revenue-sharing contract can more effectively stimulate the manufacturer to reduce carbon emissions compared to the cost-sharing contract. The cost-sharing contract can help to achieve the highest environmental performance, whereas the implementation of revenue-sharing contract can attain the highest social welfare. The benchmarking mechanism is more effective for the government to prompt the manufacturer to produce low-carbon products than the grandfathering mechanism. Although a loose carbon policy can expand the total emissions, it can improve the social welfare. Practical implications These results can provide operational insights for the retailer in how to use incentive contract to encourage the manufacturer to curb carbon emissions and offer managerial insights for the government to make policy decisions on carbon permit allocation rules. Originality/value This paper contributes to the literature regarding to firm’s carbon emissions reduction decisions under cap-and-trade policy and highlights the importance of carbon permit allocation methods in curbing carbon emissions.

scholarly journals Three-level supply chain coordination of fresh agricultural products in the Internet of Things

2017 ◽  
Vol 117 (9) ◽  
pp. 1842-1865 ◽  
Author(s):  
Bo Yan ◽  
Xiao-hua Wu ◽  
Bing Ye ◽  
Yong-wang Zhang
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Agricultural Product ◽  
The Internet ◽  
Market Demand ◽  
Content Type ◽  
Revenue Sharing Contract ◽  
The Internet Of Things

Purpose The Internet of Things (IoT) is used in the fresh agricultural product (FAP) supply chain, which can be coordinated through a revenue-sharing contract. The purpose of this paper is to make the three-level supply chain coordinate in IoT by considering the influence of FAP on market demand and costs of controlling freshness on the road. Design/methodology/approach A three-level FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT is regarded as the research object. This study improves the revenue-sharing contract, determines the optimal solution when the supply chain achieves maximum profit in three types of decision-making situations, and develops the profit distribution model based on the improved revenue-sharing contract to coordinate the supply chain. Findings The improved revenue-sharing contract can coordinate the FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT, as well as benefit all enterprises in the supply chain. Practical implications Resource utilization rate can be improved after coordinating the entire supply chain. Moreover, loss in the circulation process is reduced, and the circulation efficiency of FAPs is improved because of the application of IoT. The validity of the model is verified through a case analysis. Originality/value This study is different from other research in terms of the combination of supply chain coordination, FAPs, and radio frequency identification application in IoT.

scholarly journals Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent Demand

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Qinghua Pang ◽  
Yuer Chen ◽  
Yulu Hu
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Optimal Contract ◽  
Market Demand ◽  
Revenue Sharing Contract ◽  
Normal Environment ◽  
Contract Form ◽  
Additive Form ◽  
Dependent Demand

Considering the market demand is stochastic and dependent on price, this paper shows that the revenue-sharing contract could coordinate a three-level supply chain consisting of one manufacturer, one distributor, and one retailer under normal environment. However, the original revenue-sharing contract cannot coordinate the supply chain under disruptions in circumstances of certain incidents leading to significant changes in market demand and causing additional deviation costs. To solve the problem, this essay introduces two improved forms of revenue-sharing contract: a mixed contract form based on a quantity discount policy and a pure form, which are characterized by antidisruption ability. The model of improved revenue-sharing contract is optimized when the market demand is in the additive form or in the multiplicative form with price dependent demand. Formulas are given to calculate the optimal contract parameters. Finally, this essay demonstrates the accuracy of the model of improved revenue-sharing contract with the help of numerical examples.

scholarly journals Coordinating Contracts for Two-Stage Fashion Supply Chain with Risk-Averse Retailer and Price-Dependent Demand

2013 ◽  
Vol 2013 ◽  
pp. 1-12 ◽  
Author(s):  
Minli Xu ◽  
Qiao Wang ◽  
Linhan Ouyang
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Channel Coordination ◽  
Risk Averse ◽  
Revenue Sharing Contract ◽  
Risk Neutral ◽  
Mean Variance ◽  
Variance Approach ◽  
Dependent Demand

When the demand is sensitive to retail price, revenue sharing contract and two-part tariff contract have been shown to be able to coordinate supply chains with risk neutral agents. We extend the previous studies to consider a risk-averse retailer in a two-echelon fashion supply chain. Based on the classic mean-variance approach in finance, the issue of channel coordination in a fashion supply chain with risk-averse retailer and price-dependent demand is investigated. We propose both single contracts and joint contracts to achieve supply chain coordination. We find that the coordinating revenue sharing contract and two-part tariff contract in the supply chain with risk neutral agents are still useful to coordinate the supply chain taking into account the degree of risk aversion of fashion retailer, whereas a more complex sales rebate and penalty (SRP) contract fails to do so. When using combined contracts to coordinate the supply chain, we demonstrate that only revenue sharing with two-part tariff contract can coordinate the fashion supply chain. The optimal conditions for contract parameters to achieve channel coordination are determined. Numerical analysis is presented to supplement the results and more insights are gained.

A Multi-Retailer Decentralized Supply Chain Coordination Based on Revenue-Sharing Contracts

2014 ◽  
Vol 668-669 ◽  
pp. 1587-1590
Author(s):  
Jin Yu Ren ◽  
Yong Xian Liu ◽  
Peng Fei Zeng
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Profit Sharing ◽  
Optimal Solutions ◽  
Supply Chain System ◽  
Chain System ◽  
Numerical Example ◽  
Coordination Model ◽  
Decentralized Supply Chain

To a decentralized supply chain system consisting of a manufacturer and multiple independent retailers, the game models about the decentralized solution and centralized solution are developed. Comparison of the optimal solutions to two models reveals that the supply chain needs coordination. Then a coordination model on the revenue-sharing contracts is introduced. Finally, a numerical example shows that the perfect supply chain coordination and the flexible allocation of the profit can be achieved when a complementary profit-sharing agreement is included.

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