Revenue-sharing versus wholesale price mechanisms under different channel power structures

K Pan, KK Lai, SCH Leung, D Xiao - European Journal of Operational …, 2010 - Elsevier
K Pan, KK Lai, SCH Leung, D Xiao
European Journal of Operational Research, 2010Elsevier
We consider a supply chain channel with two manufacturers and one retailer. Each
manufacturer can choose either a wholesale price contract or a revenue-sharing contract
with the retailer. We discuss and compare the results of two different types of contracts under
different channel power structures, to check whether it is beneficial for manufacturers to use
revenue-sharing contracts under different scenarios. Then we consider a supply chain
channel with one manufacturer and two retailers. Each retailer can choose either a …
We consider a supply chain channel with two manufacturers and one retailer. Each manufacturer can choose either a wholesale price contract or a revenue-sharing contract with the retailer. We discuss and compare the results of two different types of contracts under different channel power structures, to check whether it is beneficial for manufacturers to use revenue-sharing contracts under different scenarios. Then we consider a supply chain channel with one manufacturer and two retailers. Each retailer can choose either a wholesale price contract or a revenue-sharing contract with the manufacturer. We analyze the likely outcomes under different scenarios to discover whether it is beneficial to use revenue-sharing contracts.
Elsevier
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