Coordination contracts of dual-channel with cooperation advertising in closed-loop supply chains

JiaPing Xie, Ling Liang, LuHao Liu and Petros Ieromonachou

International Journal of Production Economics, 2017, vol. 183, issue PB, 528-538

Abstract: On the background of an online/offline dual channel, this paper studies contract coordination of centralized and decentralized dual-channel closed-loop supply chains. With the feature of recycle rate fluctuation, we develop a revenue-sharing mechanism by taking the relationship between the recycle rate and the recycle revenue sharing ratio into consideration. After comparing of centralized decision and the manufacturing led decentralized decision, the optimal online/offline price, wholesale price and advertising investment are derived. The influence of revenue sharing ratio in forward and reverse channels on the online/offline prices and wholesale prices is discussed. The numeric example is used for observing the relationship between variables, and between the optimal profit and variables through analysis of changing parameter valuations.

Keywords: Closed-loop supply chains; Contract coordination; Channel conflict; Revenue sharing; Online to offline (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (62)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:183:y:2017:i:pb:p:528-538

DOI: 10.1016/j.ijpe.2016.07.026

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