Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent Demand
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 contrac...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Wiley
2014-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2014/464612 |
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| _version_ | 1832549848895717376 |
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| author | Qinghua Pang Yuer Chen Yulu Hu |
| author_facet | Qinghua Pang Yuer Chen Yulu Hu |
| author_sort | Qinghua Pang |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-3f8657ff99264ed597b4ea3e833cc23b |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-3f8657ff99264ed597b4ea3e833cc23b2025-02-03T06:08:25ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/464612464612Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent DemandQinghua Pang0Yuer Chen1Yulu Hu2School of Business Administration, Hohai University, Changzhou 213022, ChinaSchool of Business Administration, Hohai University, Changzhou 213022, ChinaSchool of Business Administration, Hohai University, Changzhou 213022, ChinaConsidering 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.http://dx.doi.org/10.1155/2014/464612 |
| spellingShingle | Qinghua Pang Yuer Chen Yulu Hu Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent Demand Discrete Dynamics in Nature and Society |
| title | Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent Demand |
| title_full | Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent Demand |
| title_fullStr | Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent Demand |
| title_full_unstemmed | Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent Demand |
| title_short | Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent Demand |
| title_sort | three level supply chain coordination under disruptions based on revenue sharing contract with price dependent demand |
| url | http://dx.doi.org/10.1155/2014/464612 |
| work_keys_str_mv | AT qinghuapang threelevelsupplychaincoordinationunderdisruptionsbasedonrevenuesharingcontractwithpricedependentdemand AT yuerchen threelevelsupplychaincoordinationunderdisruptionsbasedonrevenuesharingcontractwithpricedependentdemand AT yuluhu threelevelsupplychaincoordinationunderdisruptionsbasedonrevenuesharingcontractwithpricedependentdemand |