Title
A Coordinated Revenue-Sharing Contract For A Two-Stage Supply Chain With Linear Stepwise Inventory Holding Costs
Abstract
In this paper, the authors focus on examining the coordination mechanisms for a two-stage supply chain comprising one supplier and one retailer. The authors consider such a channel relationship that the transaction quantity between the two members is sensitive to the supplier's inventory level and that the supplier's unit inventory holding cost has a linear stepwise structure. They devise a coordinated revenue-sharing contract with bargaining so that each party's respective profit is better than that resulted from the simple sequential optimization mechanism. The key contract parameters, namely the supplier's inventory level and the retailer's revenue-sharing fraction, are obtained and analyzed. Numerical illustrations of the contracts are given and shed lights on how the supply chain should coordinate in order to gain better performance.
Year
DOI
Venue
2009
10.4018/jisscm.2009062901
INTERNATIONAL JOURNAL OF INFORMATION SYSTEMS AND SUPPLY CHAIN MANAGEMENT
Keywords
Field
DocType
Bargaining, Nonlinear Optimization, Supply Chain Coordination, Supply Contracts, Stepwise Cost
Sequential optimization,Revenue sharing,Holding cost,Communication channel,Supply chain,Database transaction,Operations management,Business
Journal
Volume
Issue
ISSN
2
4
1935-5726
Citations 
PageRank 
References 
6
0.45
15
Authors
3
Name
Order
Citations
PageRank
Jing Hou160.45
Amy Z. Zeng29910.23
Lindu Zhao38817.19