Paper Title:
Supply Chain Coordination Based on Revenue-Sharing Contracts under Random Demand
  Abstract

To a two-echelon supply chain system consisting of one manufacturer and one retailer under random demand, the game models about decentralized decision and centralized decision are constructed in which the manufacturer is the leader and the retailer is the follower. The retailer’s optimal purchasing strategies about two conditions above are given and the supply chain expected total profits under unique purchasing strategies of the retailer are compared with. Then the relations of supply chain expected total profit between with applying the revenue-sharing contracts situation and with the centralized decision situation are discussed. And the conditions to realize the supply chain perfect coordinating are defined. Finally, numerical analysis shows that applying the revenue-sharing contract in the decentralized supply chain could not only achieve the maximal overall expected performance but also allow both parties to benefit from it.

  Info
Periodical
Chapter
Chapter 8: System Modeling and Simulation
Edited by
Dongye Sun, Wen-Pei Sung and Ran Chen
Pages
4801-4805
DOI
10.4028/www.scientific.net/AMM.121-126.4801
Citation
R. S. Ma, J. Y. Ren, Y. P. Hao, "Supply Chain Coordination Based on Revenue-Sharing Contracts under Random Demand", Applied Mechanics and Materials, Vols. 121-126, pp. 4801-4805, 2012
Online since
October 2011
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Price
$32.00
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