Revenue Sharing Contract Supply Chain Example

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.

Revenue sharing contract supply chain example. To set up a uniform framework for discussion of. 14 contracts to coordinate supply chain costs differences in costs at the buyer and supplier can lead to decisions that increase total supply chain costs example. European journal of operational research 203 2 532 538. Buy back quantity flexibility and sales rebate.

Transportation research part e. Qin z yang j. Revenue sharing allows coordination of a supply chain when the retailer fixes the price of a product which buy back contracts do not. Supply chain coordination with revenue sharing contracts.

It has been applied in various supply chains. Revenue sharing contracts 28. First case is an example of a fixed price contract this reduction in profit is called double. Considering the equity of benefit distribution between the members of service supply chains in this paper we designed two revenue sharing contracts.

A very common logistics and supply chain practice described in the analysed literature is a revenue sharing contract. The revenue sharing contract is one of the most important supply chain coordination contracts. However revenue sharing advertising cost sharing contract in a specific form can achieve supply chain coordination. Either buyback contracts or revenue sharing contracts.

The buyer s eoq does not take into account. The general revenue sharing contract cannot achieve supply chain coordination. An illustrative example of supply chain contracti the set up. Buyback contracts manufacturer pays the distributor for leftover units at.

Such contracts have become more prevalent in the. Logistics and transportation review 67 92 104. However studies related to service supply chains with mass customization mc are lacking. Coordination of a socially responsible supply chain using revenue sharing contract.

Analysis of a revenue sharing contract in supply chain management. 4 the revenue sharing contract 5 some other contracts 6 discusion and comparison donglei du unb scm 2 48. And in the appropriate revenue sharing contract parameters it can also achieve a win win situation between the two sides. Because the revenue sharing contract can make the supply chain coordinate with each other well it has been becoming a hot topic in supply chain coordination chauhan porth 2005 krishnan.

Define and explain what is a supply chain contract. Section 1 introduction donglei du unb scm 3 48. The results show that.