Revenue Sharing Contract Supply Chain
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Revenue sharing contract supply chain. Abstract we consider a supply chain involving one supplier and one retailer in which a revenue sharing contract is adopted. Supply chain coordination with revenue sharing contracts. However revenue sharing advertising cost sharing contract in a specific form can achieve supply chain coordination. Such contracts have become more prevalent in the.
Buy back quantity flexibility and sales rebate. Under this contract the retailer can obtain the product from the supplier at a discounted price. Revenue sharing contract model is developed in the proposed model to coordinate the supply chain consisting of manufacturers tplsps and retailers. Strengths and limitations abstract under a revenue sharing contract a retailer pays a supplier a wholesale price for each unit purchased plus a percentage of the revenue the retailer generates.
Moreover the incentive and penalty scheme are implemented in accordance to the supply chain logistics service performance so the risks and the necessary costs could be allocated to all players. And in the appropriate revenue sharing contract parameters it can also achieve a win win situation between the two sides. Several types of contracts coordinate a supply chain when the product has a fixed price.
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