Supply Chain Coordination under RevenueSharing Rate Risk Fluctuating

Abstract

Abstract: This paper investigated the decisions in a single-period supply chain that is characterized by revenue-sharing contracts. In contrast to much of the previous research that has been done on revenue-sharing contracts which concerns the wholesale price and revenue-sharing rate, the paper extended the basic newsvendor model, and therefore examined the efficiency of supply chain under asymmetric information, references were given to every parts of supply chain. Different revenue-sharing contract designs were contrasted under symmetric and asymmetric information, in order to figure out the coordination strategy of supplier when retailer’s actual revenue-sharing rate risk fluctuating. A mathematical model was established to maximize the expected profit when revenue-sharing rates risk fluctuates. The paper discussed different profits variations of three different situations including classical revenue-sharing, revenue-sharing rate risk fluctuating and without the supplier’s considering risk fluctuations situations.

Key words: supply chain, revenuesharing, risk, asymmetric information

CLC Number:

F253.4

ZHOU Jian-Heng-1, 2 , WANG Zi-Wei-1. Supply Chain Coordination under RevenueSharing Rate Risk Fluctuating[J]. Journal of Shanghai Jiaotong University, 2011, 45(12): 1772-1777.

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