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Coordinating Three-Level Supply Chain with the Combination of a Quantity Discount Contract and a Buyback Contract

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1 Author(s)
Guidong Liu ; Sch. of Manage., Huazhong Univ. of Sci. & Technol., Wuhan, China

The purpose of this paper is to investigate the coordination problem of a three-level supply chain which consisted of a manufacturer, a distributor and a retailer. Using a quantity discount contract and a buyback contract, we derived conditions under which the three-level supply chain can be coordinated so that the maximal potential profit is realized. By adjusting the wholesale prices and the buyback rate, the profit of the supply chain can be arbitrarily divided among the manufacturer, the distributor and the retailer. The validity of the contracts is illustrated by numerical examples.

Published in:
Electronic Commerce and Business Intelligence, 2009. ECBI 2009. International Conference on

Date of Conference: 6-7 June 2009

Page(s):
447 - 450
Print ISBN:
978-0-7695-3661-3
INSPEC Accession Number:
10804464
Conference Location :
Beijing
Digital Object Identifier :
10.1109/ECBI.2009.39
Product Type:
Conference Publications

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