A Research On Revenue Sharing Contract Under CVaR Criterion:Sales Effort Affects The Number Of Demand And Off-Grid People

Withing the increasingly development and perfection of mobile applications, in this era of mobile-network information, the mobile communication industry has been closely concerned. This paper study the contract phone card which is a kind of special product with follow-up service and one of the most important product in the supply chains of communication operator.The research forms the basis of product pricing and ordering problem of communication operator and its tier-one agent. After considering the sales effort, sales motivation of tier-one agent has been severely hampered by little price difference of retail and wholesale and a lot of effort costs. The status reduces the quality and quantity of consumers, thereby harm the interests of communication operator. We design a revenue sharing contract which communication operator should share a certain proportion of fixed part in subsequent earnings to the tier-one agent for communication operator based on this. The contract will encourage the tier-one agent to enhance the degree of sales effort and achieve the purpose of improving the quality and quantity of consumers.The paper studies two kinds of models. First model assumes number of off-grid people as random variable, so communication operator and its tier-one agent are risk neutral with the aim of maximum profit. It is concluded that the optimal pricing and ordering strategy of tier-one agent and the optimal share factor of communication operator. The second model assumes the market demand as random variable, so tier-one agent is risk aversion with the aim of minimum risk by using CVaR risk measurement tool and communication operator is also risk neutral with the aim of maximum profit. We also acquire the optimal pricing and ordering strategy of tier-one agent and the optimal share factor of communication operator.The analysis and numerical examples show that appropriate level of sharing factor and sales effort will make communication operator and its tier-one agent achieve coordination and realize the maximization of benefits of the supply chain. Bigger or smaller of sharing factor and sales effort will affect the coordination of supply chain.