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Study on Supply Chain Coordination Based on the Combined Contract

Author: MaoHong
Tutor: MoJiangTao
School: Guangxi University
Course: Operational Research and Cybernetics
Keywords: perishable products supply chain coordination combined contract customer return retailer-led demand information updating
CLC: F274
Type: Master's thesis
Year: 2011
Downloads: 39
Quote: 0
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Abstract


In the environment of the economic globalization nowadays, products have shorter lifecycle, customer return, demand information updating and other factors that increase the risk of the enterprise; besides, it can readily clash with the interests and result in diminishing total supply chain profits due to the goals which differs among supply chain members. Therefore, cooperative enterprise need establish a contract coordination mechanism, so that the supply chain system is expected to achieve the optimal. This thesis presents three supply chain coordination models with different combined contract. The main content is as follows:(1) In the uncertain market demand, the retailer allows customers to return product to the firm, and the quantity of return is a function of both the quantity sold and the price, then it considers the effectiveness of coordination with buy-back contract, sales rebate or penalty contract and the joint buy-back contract with sales rebate or penalty contract. The result shows that the combined contract can coordinate the supply chain. In addition, it can not only reduce the retail price, but also increase sales volume and total profits, so that achieve a win-win situation between the members of the supply chain. Then, numerical examples and the sensitivity analysis of the main parameters are presented. (2) The supply chain coordination with customers return and the producer bought back the retailer’s surplus commodities at the end of the selling season is considered in the retailer-led supply chain. The supply chain coordination model of the joint option contract with buyback contract is established. The study indicates that the supply chain can be complete coordinated by choosing appropriate option price and buyback price. Then, numerical examples are given to verify this conclusion.(3) The retailer can make a decision of adjusting order quantity based on first order quantity and updating demand information in the lead-time. The research shows that the supply chain can be coordinated by choosing appropriate contract parameters and using return contract and revenue sharing contract. Then, numerical examples are presented to verify this conclusion.

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