We study channel coordination policies for products subject to midlife price declines during their short product life cycles. Using a two-period supply chain model consisting of one supplier and one retailer, we identify policies and/or conditions under which the supply chain can be coordinated and a win-win situation can be guaranteed. We also provide algorithms to determine the win-win policy...

We consider a supply chain with an upstream supplier who invests in innovation and a downstream manufacturer who sells to consumers. We study the impact of supply chain contracts with endogenous upstream innovation, focusing on three different contract scenarios: (i) a wholesale price contract, (ii) a quality-dependent wholesale price contract, and (iii) a revenuesharing contract. We confirm th...

Motivated by the influenza vaccine industry, we study a supply chain contracting problem under the presence of uncertainties that are related to product design, delivery, and demand, respectively. The supply chain consists of a manufacturer and a retailer, where the retailer places an order before the flu season starts and the manufacturer decides on when to produce the products. Because produc...

During the silent era, movie producers rented the vast majority of their films to exhibitors for flat per-day fees, but a technology “shock” in the form of the coming of sound led to the widespread replacement of flat fees by revenuesharing. This paper seeks to determine why. It finds that sound technology altered the structure of incentives in movie exhibition, reducing the role of the exhibit...

The coordination of a decentralized supply chain can be achieved by adopting supply chain contracts. This paper investigates how a decentralized supply chain can be coordinated by a revenue sharing contract, in which the supplier offers the retailer a lower wholesale price in return for a percentage of the retailer’s revenue. Salvage value and goodwill loss are taken into consideration, since i...

as observed in some oil and gas countries, upstream service contracts, for instance buy-back contract in iran, would provide an appropriate environment for the development of oil and gas fields. however, certain cases, such as common structures and reservoirs, deep sea oil fields or second and third generations of an oil field may require more attractive contractual mechanisms in the eyes of io...

Revenue-sharing contracts are a kind of mechanism aimed at improving performance and achieving precise coordination of the supply chain. In this paper, we analyse and develop the revenue-sharing contract model of the three-level supply chain with distributor’s sales effort dependent demand. The paper discusses the impacts of sales efforts on coordination of the supply chain and explains the rea...

One of the main priorities of companies involved in supply chains is improving the quality of their products. However, as in other parts of supply chain management, decentralized decision-making in supply quality management is prevalent, which causes inefficiencies such as the well-known double marginalization phenomenon. Coordinating schemes, such as the revenue sharing contract, can contribut...