A two-echelon supply chain coordination for deteriorating item with a multi-variable continuous demand function

作     者：Bai, Qing-Guo Xu, Xian-Hao Chen, Ming-Yuan Luo, Qian 

作者机构：Department of Production and Operations Management School of Management Huazhong University of Science and Technology Wuhan China Department of Mechanical and Industrial Engineering Concordia University Montreal Canada 

出 版 物：《International Journal of Systems Science: Operations and Logistics》 (Int. J. Syst. Sci. Oper. Logist.)

年 卷 期：2015年第2卷第1期

页      面：49-62页

基　　金：Excellent Young Scientist Research Fund of Shandong Province, (BS2013SF016) Natural Sciences and Engineering Research Council of Canada, NSERC, (RGPIN 2014-06108) Natural Sciences and Engineering Research Council of Canada, NSERC National Natural Science Foundation of China, NSFC, (71131004, 71371107) National Natural Science Foundation of China, NSFC 

主　　题：contract mechanism deteriorating item multi-variable demand supply chain coordination 

摘      要：This paper considers a two-echelon supply chain system consisting of one manufacturer and one retailer for deteriorating items. Shortages are not allowed and the market demand is simultaneously influenced by multiple factors including promotional effort, selling price, on-hand inventory level and time. Demand information is symmetrically known to both the manufacturer and the retailer, hence, the promotional effort is assumed to be provided by both members. For the system where the manufacturer and the retailer share the investment cost of promotional effort equally, it is shown that revenue sharing contract and revenue and cost sharing contract can both lead to perfect coordination. Comparing these two contracts, it is also found that the latter contract is easier to be accepted by the system. Hence, revenue and cost sharing contract is applied to coordinate the general system, and the range of revenue sharing fraction leading to a win-win outcome is obtained. Two numerical examples are presented to illustrate the development of the model with sensitivity analysis. © 2015, © 2015 Taylor & Francis.