Study on a Combined Supply Chain Contracts of Target Rebate and Quantity Discount

This paper mainly aims to design some contracts based on target rebate mechanism to coordinate the perishable product’s supply chain and achieve the win-win situation. The target rebate mechanism is mainly to improve retailers’ sales enthusiasm, increasing sales volume; while quantity discount contract can improve order quantity of the retailer effectively. In this dissertation, a two-echelon model for perishable products’ supply chain is established, which is composed by one manufacturer and one retailer. At the base of analyzing the coordinating effect of the target rebate mechanism in the supply chain, we combine the quantity discount contracts with the target rebate and apply them into the supply chain coordination. One combined contract model is built and studied on the implementation conditions of the supply chain coordination and win-win. Using numerical analysis method to analyze its impact on the improved profit rates of both sides, a variety of programs which can achieve a win-win situation for members in the supply chain is provided.