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Coordination and performance analysis for a three-echelon supply chain with a revenue sharing contract

Author

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  • Yumei Hou
  • Fangfang Wei
  • Susan X. Li
  • Zhimin Huang
  • Allan Ashley

Abstract

This paper focuses on a three-echelon supply chain composed of a manufacturer, a distributor and a retailer for a single selling period. Based on a revenue sharing contract, the coordination of the decentralised supply chain with the simultaneous move game or the leader–follower game is analysed. It is determined that the revenue sharing contract can coordinate the decentralised supply chain with the simultaneous move game. Our analysis reveals that the revenue sharing contract cannot coordinate the decentralised three-echelon supply chain with the leader–follower game except for a special situation. However, this result provides an opportunity to develop methodology and results that measure the potential improvement in supply chain performance that can be gained from utilising the revenue sharing contract. This is an important aspect of this paper.

Suggested Citation

  • Yumei Hou & Fangfang Wei & Susan X. Li & Zhimin Huang & Allan Ashley, 2017. "Coordination and performance analysis for a three-echelon supply chain with a revenue sharing contract," International Journal of Production Research, Taylor & Francis Journals, vol. 55(1), pages 202-227, January.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:1:p:202-227
    DOI: 10.1080/00207543.2016.1201601
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    Cited by:

    1. Ilkyeong Moon & Yoon Jea Jeong & Subrata Saha, 2020. "Investment and coordination decisions in a supply chain of fresh agricultural products," Operational Research, Springer, vol. 20(4), pages 2307-2331, December.
    2. Sahani Rathnasiri & Pritee Ray & Carlos A. Vega-Mejía & Sardar M. N. Islam & Nripendra P. Rana & Yogesh K. Dwivedi, 2022. "Optimising small-scale electronic commerce supply chain operations: a dynamic cost-sharing contract approach," Annals of Operations Research, Springer, vol. 318(1), pages 453-499, November.
    3. Hannan Amoozad Mahdiraji & Aliasghar Abbasi Kamardi & Moein Beheshti & Seyed Hossein Razavi Hajiagha & Luis Rocha-Lona, 2022. "Analysing supply chain coordination mechanisms dealing with repurposing challenges during Covid-19 pandemic in an emerging economy: a multi-layer decision making approach," Operations Management Research, Springer, vol. 15(3), pages 1341-1360, December.
    4. Qiang Han & Yuyan Wang, 2018. "Decision and Coordination in a Low-Carbon E-Supply Chain Considering the Manufacturer’s Carbon Emission Reduction Behavior," Sustainability, MDPI, vol. 10(5), pages 1-23, May.
    5. Mokhtar, Ahmad Rais Mohamad & Genovese, Andrea & Brint, Andrew & Kumar, Niraj, 2019. "Supply chain leadership: A systematic literature review and a research agenda," International Journal of Production Economics, Elsevier, vol. 216(C), pages 255-273.
    6. Cheng, Rong & Duan, Yongrui & Zhang, Jianguang & Ke, Hua, 2021. "Impacts of store-brand introduction on a multiple-echelon supply chain," European Journal of Operational Research, Elsevier, vol. 292(2), pages 652-662.
    7. Lina Ma & Xinran Zhang & Yushen Du, 2021. "Influence Mechanism on Supplier Emission Reduction Based on a Two-Level Supply Chain," IJERPH, MDPI, vol. 18(23), pages 1-16, November.
    8. Subrata Saha & Zbigniew Banaszak & Grzegorz Bocewicz & Izabela Ewa Nielsen, 2022. "Pricing and quality competition for substitutable green products with a common retailer," Operational Research, Springer, vol. 22(4), pages 3713-3746, September.
    9. Atieh Fander & Saeed Yaghoubi, 2022. "Mathematical models for mobile network member’s coordination through coverage development-based contract," Flexible Services and Manufacturing Journal, Springer, vol. 34(3), pages 670-708, September.
    10. Zahra Hassanzadeh & Iraj Mahdavi & Ali Tajdin & Hamed Fazlollahtabar, 2023. "Collaboration analysis for a three-tier sustainable logistics network considering 3PL using BCVR technique," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 13451-13470, November.
    11. Biswas, Indranil & Gupta, Rohit & Tiwari, Sunil & Talluri, Srinivas, 2023. "Multi-echelon supply chain coordination: Contract sequence and cut-off policies," International Journal of Production Economics, Elsevier, vol. 259(C).
    12. Bo Yan & Jing Fan & Congyan Cai & Jing Fang, 2020. "Supply chain coordination of fresh Agri-products based on value loss," Operations Management Research, Springer, vol. 13(3), pages 185-196, December.
    13. Juanjuan Qin & Kun Wang & Ziping Wang & Liangjie Xia, 2020. "Revenue sharing contracts for horizontal capacity sharing under competition," Annals of Operations Research, Springer, vol. 291(1), pages 731-760, August.

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