Studying the impact of quantity discount contract and cost-sharing contract on a two-echelon green supply chain profit

Authors

  • Naghmeh Rabie Industrial Engineering, Islamic Azad University, South Tehran Branch
Abstract:

The members of a chain always try to find new ways in order to raise their profit. Hence we intend to study two different scenarios in a single item two-echelon green supply chain including two manufacturers and one retailer to study the effects of two effective contracts on members’ profit. Two scenarios are discussed and in first one, first manufacturer proposes quantity discount contract to retailer and in second scenario retailer proposes cost sharing contract to second manufacturer. Then a numerical example and sensitivity analysis is implemented to review the mathematical relations in detail and assess the effect of some parameters on our decision variables and profits. The results show that cost sharing contract is more beneficial for retailer and second manufacturer than quantity discount contract.

Upgrade to premium to download articles

Sign up to access the full text

Already have an account?login

similar resources

Coordinating pricing and periodic review replenishment decisions in a two-echelon supply chain using quantity discount contract

In this paper, the coordination of pricing and periodic review inventory decisions in a supplier-retailer supply chain (SC) is proposed. In the investigated SC, the retailer faces a stochastic price dependent demand and determines the review period, order-up-to-level, and retail price. On the other hand, the supplier decides on the replenishment multiplier. Firstly, the decentralized and centra...

full text

Coordination and profit sharing in a two-level supply chain under periodic review inventory policy with delay in payments contract

In this paper,a coordination model has been investigated for a two-level supply chain (SC) consisting of one retailer and one supplier under periodic review inventory system. The review period and the retailer’s safety factorare assumed to be decision variables. The retailer faces stochastic demand following a normal distribution with known mean and variance. Moreover, it is assumed that unmet ...

full text

On supply chain coordination for false failure returns: A quantity discount contract approach

A large proportion of consumer returns fall into the category of false failure returns, which refer to returns without functional defects. In this paper, we consider profits resulting from exerting costly effort to reduce false failure returns in a reverse supply chain. The supply chain as a whole has a strong incentive to reduce such returns for cost saving. However, retailers typically enjoy ...

full text

Impact of Transportation System on Total Cost in a Two-Echelon Dual Channel Supply Chain

The advent of e-commerce has prompted many manufacturers to redesign their traditionalchannel structure by engaging in direct sales. In this paper, we present a dual channel inventory modelbased on queuing theory in a manufacturer-retailer supply chain, consisting of a traditional retailchannel and a direct channel which stocks are kept in both upper and lower echelon. The systemreceives stocha...

full text

Revenue Sharing Contract in a Multi-Echelon Supply Chain with Fuzzy Demand and Asymmetric Information

In this paper, we consider the revenue sharing contract between supply chain actors in a multi-echelon supply chain, where the demand of the customers and retail price are fuzzy variables. The centralized decision making system and a coordinating contract, namely, the revenue sharing contract with fuzzy demand and asymmetric information are proposed. To derive the optimal solutions, the fuzzy s...

full text

Auctions with a profit sharing contract

We study the problem of selling a resource through an auction mechanism. The winning buyer in turn develops this resource to generate profit. Two forms of payment are considered: charging the winning buyer a one-time payment, or an initial payment plus a profit sharing contract (PSC). We consider a symmetric interdependent values model with risk averse or risk neutral buyers and a risk neutral ...

full text

My Resources

Save resource for easier access later

Save to my library Already added to my library

{@ msg_add @}


Journal title

volume 11  issue 1

pages  24- 49

publication date 2018-03-27

By following a journal you will be notified via email when a new issue of this journal is published.

Hosted on Doprax cloud platform doprax.com

copyright © 2015-2023