Paper
Direct Revenue Sharing Contract in a Three-Tier Supply Chain
- Authors:
- Che-Fu Hsueh
- Abstract
- This paper proposes a new kind of revenue sharing contract for coordinating a three-tier supply chain comprised of a manufacturer, a distributor, and a retailer. The contract requires that the retailer should return partial revenues directly to the distributor and to the manufacturer. A linear model is proposed to determine the parameters of the contract such that channel coordination and a win-win situation can be achieved. We show that any solution within the derived feasible region can achieve the maximum supply chain profit and increase each partner’s profit as well. A numerical example is given to demonstrate the application of the contract.
- Keywords
- Supply Chain Management; Revenue Sharing; Channel Coordination; Collaboration
- StartPage
- 142
- EndPage
- 151
- Doi