TY - JOUR
T1 - Supply chain coordination contracts with inventory level and retail price dependent demand
AU - Saha, S.
AU - Goyal, S. K.
PY - 2015/1/1
Y1 - 2015/1/1
N2 - In this paper three unlike coordinating contracts namely (i) joint rebate contract (ii) wholesale price discount contract and (iii) cost sharing contract are proposed for two echelon supply chain coordination perspective under stock and price induced demand. It is found analytically that the manufacturer's and the retailer's preferences among three contractual forms are not always aligned. By applying bargaining theory, it is established that stock elasticity plays an important role to select coordination contract and a threshold value stock elasticity is also determined, below which cost sharing contract is not feasible. It is also found that the retailer with higher bargaining power always prefers wholesale price discount contract among considered three contracts. Results are illustrated analytically as well as numerically.
AB - In this paper three unlike coordinating contracts namely (i) joint rebate contract (ii) wholesale price discount contract and (iii) cost sharing contract are proposed for two echelon supply chain coordination perspective under stock and price induced demand. It is found analytically that the manufacturer's and the retailer's preferences among three contractual forms are not always aligned. By applying bargaining theory, it is established that stock elasticity plays an important role to select coordination contract and a threshold value stock elasticity is also determined, below which cost sharing contract is not feasible. It is also found that the retailer with higher bargaining power always prefers wholesale price discount contract among considered three contracts. Results are illustrated analytically as well as numerically.
KW - Coordination
KW - Cost sharing contract
KW - Stock-price dependent demand
KW - Supply chain management
UR - http://www.scopus.com/inward/record.url?scp=84921806642&partnerID=8YFLogxK
U2 - 10.1016/j.ijpe.2014.12.025
DO - 10.1016/j.ijpe.2014.12.025
M3 - Journal article
AN - SCOPUS:84921806642
SN - 0925-5273
VL - 161
SP - 140
EP - 152
JO - International Journal of Production Economics
JF - International Journal of Production Economics
ER -