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 ...

This paper constructs an emergency quantity discount contract to explore the inherent law of coordinating supply chain with stochastic market demand and price risk-averse supplier. Meanwhile, conditional value-at-risk (CVaR) risk measure criterion is revised study influence supplier’s aversion attitude on coordination. The results show that supplier will cause bifurcation relevant factors in un...

Supply chains are often in an environment where the demand is affected by the retailer’s sales effort and the supplier has no accurate information about the retailer’s cost. In this situation, the retailer’s action of distorting his cost information could damage the efficiency of the supply chain. In order to reduce the resulted impairment, the problem of how to coordinate the retailer’s action...

E the tension between theory and practice regarding complexity and performance in contract design is especially relevant. The goal of this paper is to understand why simpler contracts may commonly be preferred in practice despite being theoretically suboptimal. We study a two-tier supply chain with a single supplier and a single buyer to characterize the impact of contract complexity and asymme...

In this paper, we consider the coordination issue on a supply chain when the firm on this chain tries to produce new products. By considering the risk of new products, three contracts, constant wholesale price contract, revenue sharing contract and linear quantity discount policy, are investigated.

The use of linear wholesale price contract has long been recognized as a threat to achieving channel effciency. Many formats of nonlinear pricing contract have been proposed to achieve vertical channel coordination. Examples include two-part tariff and quantity discount. A two-part tariff charges the downstream party a fixed fee for participation and a uniform unit price. A quantity discount co...

In this paper, seller-buyer supply chain coordination with general side-payment contracts is introduced to gain the maximum possible chain profit. In our model, the logistics costs for both buyer and seller are considered and the final demand is also supposed to be a decreasing function of the retail price. Since parties aim to maximize their individual profits, the contractual parameters are s...

Answers how much to order when to order. Reduced price when item is purchased in larger quantities.The first model we will present is called the economic order quantity EOQ. We will discuss two types of quantity discount contracts: all units discounts and.buy the lowest total cost quantity, save the buyer money and, in some cases, receive more goods. quantity discount model example When we buy ...