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

Abstract:

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.

• Periodical: Applied Mechanics and Materials (Volumes 668-669)
• Pages: 1587-1590
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.668-669.1587
• Online since: October 2014
• Authors: Jin Yu Ren, Yong Xian Liu, Peng Fei Zeng
• Keywords: Contracts, Multiple Retailers Coordination, Revenue Sharing, Stochastic Demand

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