Research on the mechanism strategy of a revenue sharing contract under recall mode
by Shun Zhang; Haiju Hu; Chen Zhao; Ying Wang; Qianwen Liu
International Journal of Internet Manufacturing and Services (IJIMS), Vol. 8, No. 1, 2021

Abstract: A revenue-sharing contract provides applicable strategy for supply chain cooperation and has been widely put into practice. Is it possible to integrate it into the supply chain system under recall mode? And how to ensure the overall benefit of the supply chain? These are spirited issues to be resolved. Under no preference consuming market, this paper mainly discusses the recalling supply chain system, consisted of a single supplier and a single retailer, with the application of benefit sharing contract. Considering the way in which the supplier entrusted the retailer to recall, analysed the entire process from sales to recall, this paper conducts research on the optimisation of revenue-sharing contract in the supply chain. Under different price situations, this paper focuses on the study of the effect of the proportion of supply chain division on the profit maximisation strategy of suppliers and retailers, and solves the problem of distribution of profits for decentralised decision making under non-consumer preference markets.

Online publication date: Tue, 27-Apr-2021

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