Research On Rebate And Penalty Contract For Supply Chain Coordination

As the economic globalization and the rapid development of information technology, the competition among enterprises is becoming fiercer and fiercer. Enterprise not only need to improve its competitive advantages, but also as a member of the supply chain have to improve the cooperation ability of the whole supply chain. Therefore the supply chain management which can coordinate the cooperation among enterprises is very important. Supply chain contract is an effective way to coordinate the supply chain. Supply chain contract in essence, is a kind of incentive way, which can change the incentive structure of the supply chain to realize the supply chain coordination. The rebate and penalty contract, one of the supply chain contracts, uses its special incentive mechanism to coordinate the supply chain.As the simple rebate mechanism has limitations, this thesis proposes a rebate and penalty contract by adding a penalty parameter in the target rebate contract. Because that the rebate and penalty are different parameters, the rebate and penalty contract is different from the rebate and penalty contract with the same parameters which is proposed before. First we establish the model for the rebate and penalty contract in a supply chain consisting of a supplier and a retailer. By in-depth study, we prove that the rebate and penalty contract can coordinate the supply chain. Then we explore how the contract can coordinate the supply chain, analyses the impact of the contract parameters on profit allocation between the enterprises and demonstrate a numerical example to show the validity and flexibility of the proposed rebate and penalty contract. Finally based on the supply chain contract theory, we design and develop a decision support system for supply chain contract design and coordination. As this system provides a platform for the management of the supply chain contract, supply chain members can formulate the contract on line, consulate the contract parameters and check the profit figure when the contract can coordinate the supply chain. By using this system, it can not only realize the supply chain coordination, but also improve the efficiency of the supply chain management.