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Supply chain coordination through rebate induced contracts

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  • Saha, Subrata

Abstract

In this paper three different types of rebate induced contract namely direct-rebate and revenue sharing contract; downward direct rebate contract; direct-rebate and effort sharing contract are proposed for supply chain coordination perspective. Effectiveness and flexibility of proposed contracts under linear and iso-elastic demand are discussed analytically. It is shown that under certain conditions both manufacturer and retailer can gain more profit by means of appropriate coordination contracts. Several important implications are derived analytically to point out relationship among characteristically different contracts. Results are illustrated with numerical examples.

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  • Saha, Subrata, 2013. "Supply chain coordination through rebate induced contracts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 120-137.
    • Handle: RePEc:eee:transe:v:50:y:2013:i:c:p:120-137
    DOI: 10.1016/j.tre.2012.11.002
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    8. Hongyan Li & Shiming Deng, 2019. "A game-theoretical analysis of joint-rebate strategies in platform-based retailing systems," EURO Journal on Decision Processes, Springer;EURO - The Association of European Operational Research Societies, vol. 7(1), pages 117-150, May.
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    10. Saha, S. & Goyal, S.K., 2015. "Supply chain coordination contracts with inventory level and retail price dependent demand," International Journal of Production Economics, Elsevier, vol. 161(C), pages 140-152.
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    14. Hou, Xiyang & Li, Jianbin & Liu, Zhixin & Guo, Yongjiang, 2022. "Pareto and Kaldor–Hicks improvements with revenue-sharing and wholesale-price contracts under manufacturer rebate policy," European Journal of Operational Research, Elsevier, vol. 298(1), pages 152-168.
    15. Liu, Xiaotong & Zhang, Kai & Chen, Bokui & Zhou, Jun & Miao, Lixin, 2018. "Analysis of logistics service supply chain for the One Belt and One Road initiative of China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 117(C), pages 23-39.
    16. Cheng, Xianghui & Deng, Shiming & Jiang, Xuan & Li, Yanhai, 2023. "Optimal promotion strategies of online marketplaces," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1264-1278.
    17. Zhao, Lianxia & Guo, Wen & Fang, Shu-Cherng & An, Qi, 2024. "Enhancing supply chain coordination through transparency initiatives to mitigate product returns," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
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    19. Chen, Kebing & Xiao, Tiaojun, 2015. "Outsourcing strategy and production disruption of supply chain with demand and capacity allocation uncertainties," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 243-257.
    20. Panda, Shibaji, 2014. "Coordination of a socially responsible supply chain using revenue sharing contract," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 92-104.
    21. Jinjin Zhang & Xin Li & Yong-Hong Kuo & Yan Chen, 2021. "Coordinating Supply Chain Financing for E-commerce Companies Through a Loan Contract," SAGE Open, , vol. 11(4), pages 21582440211, December.
    22. Yan, Xinghao & Zaric, Gregory S., 2016. "Families of supply chain coordinating contracts in the presence of retailer effort," International Journal of Production Economics, Elsevier, vol. 175(C), pages 213-225.
    23. Yang, Lei & Tang, Ruihong, 2019. "Comparisons of sales modes for a fresh product supply chain with freshness-keeping effort," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 425-448.
    24. Lei Xu & Runpeng Gao & Yu Xie & Peng Du, 2019. "To Be or Not to Be? Big Data Business Investment Decision-Making in the Supply Chain," Sustainability, MDPI, vol. 11(8), pages 1-14, April.

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