Study On Coordinating Contracts Related To Return Policy For Perishable Product’s Three-level Supply Chain

With the rapid progress of science and technology, consumer demands continuously improve and the product quality and service for consumer demand more and more. Market competition becomes increasingly fierce and products have shorter life cycle and update quickly. More and more products have the characters which have long production lead time, short selling time, very low value of unsold products even needing disposal cost and undermined market demand of perishable products with the development of science technology. According to these characteristics of perishable product, in order to better satisfying the needs of consumers and gaining more profit, we must adopt the appropriate incentive mechanisms. These mechanisms can promote supply chain cooperating each other and supply chain coordination development, assume the market risk together, realize win-win all parties and improve the competitiveness of the whole supply chain. Therefore, the research of perishable products supply chain coordination has practical significance.This dissertation mainly aims to design some contracts based on return policy to coordinate to perishable product’s supply chain and achieve the win-win situation. We study the perishable product’s supply chain of a single manufacturer, a single distributors and a single retailer. How to realize their optimal strategies for the return reverse logistics caused by consumers’ false failure return and defective products return. Meanwhile, coordinate the supply chain and the relationship between the supply chain members. About false failure return, firstly, we consider the influence of the substitution rate of product to demand and return rate. Establishes centralized supply chain and decentralized supply chain models and analyzes the optimal rate of substitution and order quantities of the retailer. At last, we use price difference buyback contract to coordinate return supply chain. Secondly we analyze the relationship between the return price and credit level. Using return price for a transfer signal analyzes retailer’s credit level. At the same time, credit level affects the product demand and return rate. And talk about full refund and no return policy. At last, we study the defective products return. Establish simple buyback contract. The manufacturer undertakes the retailer’s credit loss. And we analyze each parameter on the optimal strategy of the members of supply chain and overall profits influence.