Supply chain coordination under stock- and price-dependent selling rates under declining market (Q666424)

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Supply chain coordination under stock- and price-dependent selling rates under declining market
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    Supply chain coordination under stock- and price-dependent selling rates under declining market (English)
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    8 March 2012
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    Summary: We explore coordination issues of a two-echelon supply chain, consisting of a distributor and a retailer. The effect of revenue-sharing contract mechanism is examined under stock-time-price-sensitive demand rate. First, we investigate relationships between distributor and retailer under noncooperative distributor-Stackelberg games. Then we establish analytically that revenue sharing contact is able to coordinate the system and leads to the win-win outcomes. Finally, numerical examples are presented to compare results between the different models.
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