Inventory Decisions and Contracts Analyses in a Dual-Channel Supply Chain with Sale Services

Rong-fang Yan () and Jian-jun Wu
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Rong-fang Yan: Northwest Normal University
Jian-jun Wu: Northwest Normal University

A chapter in Proceedings of 20th International Conference on Industrial Engineering and Engineering Management, 2013, pp 1131-1142 from Springer

Abstract: Abstract The main purpose of this paper is to study the inventory and contracts coordination strategies of a dual-channel supply chain with both stochastic demand and sale services under a single-period. This paper examines the maximal profit of the system under centralized decision-making, and evaluates the impacts of both sale services and the degree of retailer loyalty on the member enterprises’ decisions and profits. The each member’s performance level and profit behavior under decentralized decision are explored and analyzed in the four cases: wholesale price (WPC), buy-back (BBC), revenue sharing (RSC) and advanced purchase discount contract (APDC). Numerical studies reveal that the APDC can maximize the integrated profit of the system while it can fairly divide the risk of inventory between manufacturer and retailer.

Keywords: Contract coordination; Dual-channel; Optimal order quantity; Sale services (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-40063-6_111

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DOI: 10.1007/978-3-642-40063-6_111

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