TITLE:
Revenue Sharing Coordination Mechanism of Supply Chain under Disruptions
AUTHORS:
Weiwei Ji, Baohua Zhang, Hengmin Lv
KEYWORDS:
Supply Chain Coordination, Disruptions, Revenue-Sharing Contract
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.7 No.10,
October
10,
2019
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.