Retailer-Led Supply Chain Contract Coordination About Shelf-Space-Dependent

There are series of products on market whose demand is positive correlation with the amount of shelf display, these products are called Shelf-Space-Dependent. Mass products will bring about more cost such as stock-holding cost and salvage value processing cost, etc. How to reasonably confirm orders and wholesale price to improve sales and profits which is the focus of retailer-led supply chain. Therefore, researches on retailer-led supply chain contract about Shelf-Space-Dependent is of great significance to retailers.This paper considers retailer-led wholesale price contract based on Shelf-Space-Dependent and analyses product quantity and wholesale price in single cycle to compare profits between centralized decision-making and decentralized decision-making. Results show that retailer cannot acquire most profit under decentralized decision-making, not coordinating supply chain or maximizing retailer profit.Then this paper studies delay in payments and revenue sharing contract to improve supply chains performance of wholesale price contract. It also discusses if the two optimal model can maximize the profit of retailers and its applicable condition of relevant variables and their influences. We find that delay in payment contract and revenue sharing contract can both coordinate the wholesale price contract, reasonable variables set can improve supply chain performance to make retailer-led supply chain contract realize Pareto optimality. In addition, this paper also compares the two contracts effect in the real market, the result shows that revenue sharing contract are more flexible to contract parameters settings in retailer’s dominance, it also can make suppliers to share the possible sales risk. At the same time, this paper respectively use numerical simulation and shows charts to help understand intuitively.This paper provides a view of retailer-led supply chain contract to study product order and wholesale price strategy and supply chain coordination of Shelf-Space-Dependent. And it also can help retailers better understand the characteristics of retailer-led supply chain of Shelf-Space-Dependent and optimal product order strategy.