Supply Chain Coordination under Revenue-sharing Contract with Manufacturer’s Effort Dependent Demand
PANG Qing-hua1,2
(1.School of Business Administration,HoHai University,Changzhou 213022,China; 2.Institute of Enterprise Information and Industrial Engineering,HoHai University,Changzhou 213022,China)
Abstract:
The paper studies the impact of the manufacturer’s effort on the coordination of revenue-sharing contract based on three-level supply chain.The result shows that the manufacturer has a unique advantage in product design,manufacturing etc.,and its effort can improve the product sales.In the end,the paper uses a numerical example to illustrate the model.It provides a new way to reduce the “double marginalization” on the efficiency of the supply chain and improve the level of work activities of the supply chain members.