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

Autor: Qinghua Pang, Yuer Chen, Yulu Hu
Jazyk: angličtina
Rok vydání: 2014
Předmět:
Zdroj: Discrete Dynamics in Nature and Society, Vol 2014 (2014)
Druh dokumentu: article
ISSN: 1026-0226
1607-887X
DOI: 10.1155/2014/464612
Popis: 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.
Databáze: Directory of Open Access Journals