Revenue Sharing Supply Chain Management

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.

Revenue sharing supply chain management. Supply chain coordination by revenue sharing contracts. Analysis of a revenue sharing contract in supply chain management. Logistics and transportation review 67 92 104. Design coordination and operation north holland amsterdam isbn.

Journal of service science and management 10 309 318. One lim itation to revenue sharing is the additional administrative cost it imposes on the supply chain. Many firms have enjoyed remarkable success using revenue sharing contracts to improve supply chain performance. Sarathi gp sarmah sp jenamani m.

2017 coordination of supply chain under the revenue sharing advertising cost sharing contract. An integrated revenue sharing and quantity discounts contract for coordinating a supply chain dealing with short life cycle product. That is the retailer can choose the optimal actions with respect to quantity. Handbooks in operations research and management science 11.

International journal of logistics research and applications 11 1 17 29 2008. European journal of operational research 203 2 532 538. A wide range of supply chain settings. In the third paper hu and feng 2017 the supply chain with revenue sharing contract and service requirement under supply and demand uncertainty is modeled.

Strengths and limitations their analysis demonstrates that revenue sharing allows a supplier and a single retailer to coordinate their supply chain effectively. Coordination of a socially responsible supply chain using revenue sharing contract. This article is provided by the california management review. At the same time other firms have struggled to make it work.

Analysis of a revenue sharing contract in supply chain management. Qin z yang j. In their 2005 management science article supply chain coordination with revenue sharing contracts. Thirdly the manufacturers optimal decisions under a nash equilibrium are provided and revenue sharing contracts can achieve supply chain coordination and pareto improvement are stated.

Video rental industry and its pioneering deal with movie studios is one such example. International journal of production economics. Quin z yang j. Observe that risk sharing using a revenue sharing clause with a 1 wholesale price and a 45 percent share for the supplier increases profits for the retailer as well as the manufacturer and the supply chain as a whole compared with example 15 1 in which there was no risk sharing.

Nevertheless revenue sharing contracts must have some limitations otherwise we would expect to observe them in every industry.