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Revenue Sharing Contract Design with Marketing Strategy Types of Suppliers

In: Liss 2014

Author

Listed:
  • Hua He

    (Southwest Jiaotong University
    Tian Fu College of Southwestern University of Finance and Economics)

  • Xin Fang

    (Southwest Jiaotong University)

  • Yinfeng Du

    (Tian Fu College of Southwestern University of Finance and Economics)

Abstract

In this article, research revenue sharing contract design when a supplier is leader and a retailer is follower in a two echelon supply chain. We differ from previous research all assume the supplier and retailer both profit oriented by distinguishing the marketing strategies of supplier. The marketing strategies include two types: profit oriented and sales oriented. The analysis results show the revenue sharing contract can achieve supply chain coordination and Pareto optimality in the supply chain with profit oriented suppliers; In the supply chain with sales oriented supplier, revenue sharing contract can obtain supply chain collaboration solutions and the Pareto improvement for the supplier and the retailer when the retailer’s order quantity is in a certain range. But only get the supply chain collaboration solution when the retailer’s order quantity is beyond the range.

Suggested Citation

  • Hua He & Xin Fang & Yinfeng Du, 2015. "Revenue Sharing Contract Design with Marketing Strategy Types of Suppliers," Springer Books, in: Zhenji Zhang & Zuojun Max Shen & Juliang Zhang & Runtong Zhang (ed.), Liss 2014, edition 127, pages 275-280, Springer.
  • Handle: RePEc:spr:sprchp:978-3-662-43871-8_42
    DOI: 10.1007/978-3-662-43871-8_42
    as

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