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The coordination of a four-level supply chain made up of raw material supplier, manufacturer, distributor, retailer and a revenue sharing contract is studied in relation to price. A mathematical model is thus developed to satisfy the conditions for coordination of supplying channels and attain the win-win among all businesses in the chain. A numerical example is given and the results reveal that the reasonable choice of contract parameters will attain the win-win among all businesses under the precondition that the total profit of the supply chain has no loss.
Date of Conference: 29-31 Oct. 2010