Title: Supply Chain Coordination with Profit-Sharing Contract for a Short-Life-Cycle Product
Abstract: This paper considers a supply chain coordination problem for a short-life-cycle product characterized by the single cycle and two selling stages.Firstly,the inventory model of whole system is depicted with the stochastic dynamics programming.Then,a profit-sharing contract is developed to coordinate the decentralized system,and its validity for channel coordination is proved.Finally,the analysis on system performances is simulated with some examples.It is shown that this profit-sharing contract can be applied not only to the perfect competitive market,but also to the imperfect competitive market,and under two markets the perfect coordination can be gained under the decentralized system.Furthermore,by the contract the retailer will avoid shouldering more risks,and the supplier will strengthen his status in supply chain channel.
Publication Year: 2009
Publication Date: 2009-01-01
Language: en
Type: article
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