Title: Coordinating a Three-level Supply Chain by RS-TT Combined Contracts
Abstract: This paper analyzes the coordination of a three-level supply chain made up of manufacturer,distributor and retailer under the random demand.Firstly,the optimal order quantity is determined with the channel coordination the supply chain;then the paper designs a combined contract(Revenue-sharing and Two-part Tariff contract,RS-TT),namely,it takes revenue sharing contract and two-part tariff contract in the two transactions of the three-level supply chain to coordinate the supply chain,including two forms:(w,φ,ψ)and(τ,T,ψ).It validates that RS-TT contracts can coordinate the three-level supply chain by choosing reasonable parameters.The reasonable choice of parameters can attain the win-win good among all business members,which will help to improve the decision-making capacity and competitive ability of businesses involved in the supply chain,and the sizes of parameters in a reasonable range relate to the bargaining position of a business.Finally,the validity of the RS-TT contracts is illustrated by a numerical example.
Publication Year: 2010
Publication Date: 2010-01-01
Language: en
Type: article
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