Buy Back Contract Of Supply Chain Based On Disruption With The Level Of Sales And Qualiy Effort

Today, most of businesses around the world have reached a consensus about supply chain management. Only do they plan、coordinate、operate and control the entire supply chain, the right products can be forwarded to the right customers by the proper quantity at the right time. In an optimization supply chain, the enterprises can improve the customers’satisfaction, reduce business costs and optimize the business process quality.Because of the different external conditions and resources, the businesses have the different goals, even if there is some conflict of interest with each other. So, there will be disorder in the supply chain.The object of this paper focuses on is the buy-back contact in the simple two-echelon supply chain, which is one of the contacts in the coordination mechanism of supply chain. It considers three factors:the return logistics costs、 retailer’s sales effort and supplier’s quality effort. On above, we study the coordination mechanism.Firstly, in the case of demand uncertainty, we set up a buy-back contract based on the basic newsboy model, taking into account the return logistics costs. And we find that, when the logistics costs is at a lower level, a remarkable positive correlation exists between the logistics costs and the repurchase price.Secondly, the retailer’s promotional effort is also to influence the demand of the product. Now, the supplier and the retailer need reach a promotional cost-sharing agreement in order to achieve supply chain’s coordination. It is proved that a fixed sales costs sharing ratio can achieve the project of the supply-chain coordination.Lastly, in addition to the front factors, the market demand also be effectec by another important factor of product quality in the actual production. Incre(?)ng the overall interests of the supply chain, supplier should improve the product(?)quality to make benefit to the both of remembers. So the retailer will have a share for the quality costs with the supplier. We finally gain an another quality costs sharing ratio from the retailer can still achieve the coordination of the supply chain.