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Supply Chain Coordination Under Ramp-Type Price and Effort Induced Demand Considering Revenue Sharing Contract

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  • Subrata Saha

    (Department of Mathematics, Institute of Engineering & Management, Salt Lake electronic complex, Kolkata 700091, West Bengal, India)

  • S. P. Sarmah

    (Department of Industrial & Systems Engineering, IIT, Kharagpur 721302, India)

Abstract

In this paper, a revenue sharing contract is designed to coordinate a distribution channel where the demand of the product is ramp-type price and effort sensitive. It is shown that traditional revenue sharing contract does not coordinate the system. As an alternative, two new mechanisms are proposed (i) revenue sharing with coordinated effort of the retailer alone and (ii) both revenue and effort sharing contract. In addition, a crucial modification of revenue sharing fraction is also proposed. To enhance the applicability of revenue sharing contract, the contract parameters are determined by using bi-level multi-objective fuzzy goal programming technique where manufacturer sets the wholesale price greater than the marginal cost. Numerical examples are presented to illustrate all the models.

Suggested Citation

  • Subrata Saha & S. P. Sarmah, 2015. "Supply Chain Coordination Under Ramp-Type Price and Effort Induced Demand Considering Revenue Sharing Contract," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 32(02), pages 1-24.
    • Handle: RePEc:wsi:apjorx:v:32:y:2015:i:02:n:s0217595915500049
    DOI: 10.1142/S0217595915500049
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    References listed on IDEAS

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    1. -, 2007. "Major statistical publications: abstracts," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 27648, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    Cited by:

    1. Xiaofang Liu & Jian Li & Jun Wu & Guoqing Zhang, 2017. "Coordination of supply chain with a dominant retailer under government price regulation by revenue sharing contracts," Annals of Operations Research, Springer, vol. 257(1), pages 587-612, October.
    2. Subrata Saha & Zbigniew Banaszak & Grzegorz Bocewicz & Izabela Ewa Nielsen, 2022. "Pricing and quality competition for substitutable green products with a common retailer," Operational Research, Springer, vol. 22(4), pages 3713-3746, September.
    3. Shang-Chia Liu & Chin-Chia Wu, 2016. "A Faster FPTAS for a Supply Chain Scheduling Problem to Minimize Holding Costs with Outsourcing," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 33(05), pages 1-11, October.
    4. Y. Sarada & S. Sangeetha, 2022. "Coordinating a reverse supply chain with price and warranty dependent random demand under collection uncertainties," Operational Research, Springer, vol. 22(4), pages 4119-4158, September.
    5. Shafiq, Muhammad & Savino, Matteo M., 2019. "Supply chain coordination to optimize manufacturer's capacity procurement decisions through a new commitment-based model with penalty and revenue-sharing," International Journal of Production Economics, Elsevier, vol. 208(C), pages 512-528.

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