Title: Supply chain coordination under revenue-sharing contract with value-added services considering risk-attitude of the customers

Authors: Nafiseh Shamsi Gamchi; Seyed Ali Torabi

Addresses: School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran ' School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

Abstract: In this paper, we address a dual-channel supply chain in which a manufacturer sells multiple products via both a direct channel (like an online market) and indirect channels (e.g., through some retailers). Different service contracts with different risk-attitudes are offered by different channels as product arranty. A decentralised and a centralised model (under revenue-sharing contract) are discussed to obtain the sale price of each product at each channel. Two coordinating factors, namely the wholesale price and the fraction of revenue, are obtained as decision variable and using 'Shapley value' respectively. Finally, a numerical example is presented to illustrate the applicability of the proposed decision models.

Keywords: service contracts; centralised supply chain; revenue sharing contract; dual-channel; risk-attitude.

DOI: 10.1504/IJSOM.2018.090455

International Journal of Services and Operations Management, 2018 Vol.29 No.4, pp.507 - 526

Received: 15 Mar 2016
Accepted: 29 Jul 2016
Published online: 19 Mar 2018 *

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