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
-