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Supply chain coordination under vendor-managed inventory with consignment-based revenue-sharing contract

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2 Author(s)
Liang-Tu Chen ; Dept. of Commerce Autom. & Manage., Nat. Pingtung Inst. of Commerce, Pingtung, Taiwan ; Chun-Chin Wei

The paper deals with the problem of decentralized supply chain coordination in a single-retailer Stackelberg and a single-supplier over a multi-period planning horizon under VMI system with consignment and revenue-sharing agreements, subject to deteriorated goods and multivariate demand function. We formulate the profit-maximization issue and develop the solution procedures under cooperative and non-cooperative policies. Our analysis reveals that the benefit generated from cooperative policy can significantly achieve channel-wide profit improvements.

Published in:
Educational and Information Technology (ICEIT), 2010 International Conference on  (Volume:2 )

Date of Conference: 17-19 Sept. 2010

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