Research On Supply Chain Coordination With Revenue Sharing Contract Based On Consignment Stock

With the acceleration of the process of global economic integration, marketcompetition is not just a competition between the enterprises and enterprise, butbetween the supply chain and supply chain,"Cooperation" has become animportant feature of economic development in the21st century. In the traditionalinventory management mode, each enterprise independent of the development ofinventory management strategy, and mutual lack of information sharing is notconducive to supply chain coordination and cooperation. Consignment stock modeis the use of collaborative thinking in supply chain inventory management.Retailers is conducive to the pursuit of zero inventory control, as much as possibleto ensure does not occur out of stock, an increase of flexibility, but shift theinventory risk is transferred to the supplier. Suppliers bear the risk of the retailer’sinventory, so the gains may be reduced, this will result in the rights and obligationsbetween the two is not uniform, is not conducive to the coordination of the supplychain. Therefore, supply chain coordination is particularly important in the mode ofconsignment inventory.Coordination of the supply chain is of great significance for achieving theoverall effectiveness of the optimal supply chain and enhance overallcompetitiveness. Analysis of the demand from the price impact, demand is drivenby the price impact and the downside risk constraint under the three conditions ofsupply chain coordination based on consignment stock mode. Through theestablishment of a revenue sharing contract coordination model to examine itscoordinating role in the supply chain.The contents of this paper include the following sections:(1) The theory of consignment stock, supply chain coordination and supplychain contract. Described the consignment inventory, supply chain management,supply chain coordination and the basic concepts of supply chain contract toanalyze the factors and significance of the impact of supply chain coordination,introduced the concept of supply chain revenue sharing contract, and to achieveconditions. (2) Revenue sharing contract coordination model based on the consignmentstock and price remain unchanged. Revenue sharing contract coordination modelis presented based on the consignment stock and fully consider the product out ofstock losses, the end of the residual value and product cost of sales of surplusproducts, and other factors. Based on the analysis of the model makes the supplychain coordination with contract parameters, and through an example to verify thefeasibility of the model. By determining the contract parameters suitable range, toachieve supply chain coordination.(3) Revenue sharing contract coordination model based on the consignmentstock and price elasticity. Some of the proposed model to supplement and improve,analysis of price elasticity index and order quantity factor influence to the model.Based on the analysis of the model that make the supply chain coordination withcontract parameters, analysis of price elasticity index and contract the relations ofparameters, an example shows the feasibility of the model.(4) Revenue sharing contract coordination model based on the consignmentstock and under downside risk. Through the introduction of the financial sectordownside risk measure, assumed that supplier risk neutral, the retailer is riskaverse, discussed in the downside risk constraint under supply chain coordinationbased on revenue sharing contract of supply chain model.The main innovations of this paper are as follow:(1) In the consignment stock manner, consider product stock loss and the finalsale of surplus value and other factors, to establish a revenue sharing contractcoordination model under stochastic demand.(2) Assumes that the supplier is risk neutral and the retailer is risk averse, byintroducing a measure of downside risk, establish a revenue sharing contractcoordination model based on the consignment stock and under downside risk, andanalysis of the downside risk and contract parameters relationship.(3) Assumes that the shortage caused by the loss due to demand uncertaintyshared by retailers and suppliers in the model of this paper, which reflects thesupplier and the retailer in profit sharing and risk sharing.