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Supply Chain Coordination under Stock- and Price-Dependent Selling Rates under Declining Market

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  • Subrata Saha
  • Sambhu Das
  • Manjusri Basu

Abstract

We explore coordination issues of a two-echelon supply chain, consisting of a distributor and a retailer. The effect of revenue-sharing contract mechanism is examined under stock-time-price-sensitive demand rate. First, we investigate relationships between distributor and retailer under noncooperative distributor-Stackelberg games. Then we establish analytically that revenue sharing contact is able to coordinate the system and leads to the win-win outcomes. Finally, numerical examples are presented to compare results between the different models.

Suggested Citation

  • Subrata Saha & Sambhu Das & Manjusri Basu, 2012. "Supply Chain Coordination under Stock- and Price-Dependent Selling Rates under Declining Market," Advances in Operations Research, Hindawi, vol. 2012, pages 1-14, July.
    • Handle: RePEc:hin:jnlaor:375128
    DOI: 10.1155/2012/375128
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