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Revenue Sharing Coordination Mechanism of Supply Chain under Disruptions

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DOI: 10.4236/jss.2019.710003    28 Downloads   60 Views

ABSTRACT

This paper studies the coordination problem of a supply chain which is consisted of one supplier and one retailer. Based on a mathematical model, this paper analyzes how to adjust the production plan and pricing strategy to maximize the profit of the supply chain when market scale, price sensitivity coefficient and product cost are disrupted. We assume that the supplier and the retailer adopt revenue-sharing contract to coordinate the supply chain. If the mutation is small, the decision-maker wouldn’t adjust the production plan. If the mutation is large, the decision-maker had better adopt an improved revenue-sharing contract which has a stronger anti-disruption ability to adjust the production plan and pricing strategy. The new contract can coordinate the supply chain under mutation and realize the optimal allocation of the supply chain’s profit.

Cite this paper

Ji, W. , Zhang, B. and Lv, H. (2019) Revenue Sharing Coordination Mechanism of Supply Chain under Disruptions. Open Journal of Social Sciences, 7, 32-37. doi: 10.4236/jss.2019.710003.

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