Supply Chain Coordination Under Revenue Sharing Contract With Different Factors

It is well know that the income distribution is one of the issues which supply chain members most concern about. The development process of the supply chain income distribution policy is affected by many factors, which can generally be summarized as the following three categories: market properties, effort level, risk management awareness. This paper has reviewed many literatures and chose price-influence demand setting, demand with sales effort effect and option price mechanism to design and analyze the revenue-sharing contract model. Specifically, the contributions are as following:(1) Revenue-sharing contract with price-influence demand. The model is more close to the reality by including the situation of oversupply and shortage. Price elasticity and order quantity factor are used for the analyzing of the model. The result shows that revenue-sharing contract can achieve decentralized supply chain coordination with proper revenue-sharing percentage.(2) Revenue-sharing contract with sales effort effect. Investigated the coordination effect of the traditional revenue-sharing contract, and then provide a new contract combine with revenue-sharing and sales cost sharing. The result shows that the new contract can achieve Pareto Optimal and there exist optimal order quantity and effort level when the sales effort is random.(3) Revenue-sharing contract with option price mechanism. Use option price mechanism to manage risk, two option-style revenue-sharing contract models are designed one consider the manufacture is the leader without retailer's sales effort, the other consider the retailer is the leader with retailer's sales effort. The result shows that option-style revenue-sharing contract can effectively avoid risk and achieve decentralized supply chain coordination.