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On the equivalence of selected supply chain contract mechanisms


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  • Vijayender Reddy Nalla
  • Jack A.A. van der Veen
  • Venu Venugopal

    (Nyenrode Business Universiteit)

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    This paper models a situation where a Supplier sells a fashion product to a Buyer who in turn sells the product to the consumers. Both the Supplier and the Buyer set their own selling price. For the above setting this paper designs different contract mechanisms such as Revenue sharing, Profit sharing, Quantity discounts, License fee and Mail-in-rebate contract mechanisms. The paper shows that the designed contract mechanism can provide both coordination and win-win. The paper also establishes the equivalence between the designed contract mechanisms and argues that industries can use one mechanism over the other in case of implementation problem.

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    Bibliographic Info

    Paper provided by Nyenrode Business Universiteit in its series Nyenrode Research Papers Series with number 05-08.

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    Date of creation: 2005
    Date of revision:
    Handle: RePEc:dgr:nijrep:2005-08

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    Related research

    Keywords: Coordination; Win-Win; Supply Chain Contracts; Mail-in-rebates;

    This paper has been announced in the following NEP Reports:


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