Coordinated Contract Design for Two-Level Supply Chain Considering Supplier's Quality Level
Available Online December 2016.
- https://doi.org/10.2991/icemse-16.2016.3How to use a DOI?
- Supply chain contract, game theory, supplier's quality, channel coordination
- This paper investigated procurement contracts in a two-level supply chain system which includes a supplier and a manufacturer who sells the supplier's product to the final market, and the market demand function was given by linear demand function in quality and price. We designed three supply chain contract models employing game theory: optimal contracts in centralized control setting, profit margin contract and profit sharing contract in decentralized control setting. The study shows that the profit sharing contract could achieve supply chain channel coordination in decentralized setting, besides, the retail price is decreasing function with supplier's quality level, and meanwhile the order quantity and the expected profit are increasing functions with supplier's quality level.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Pin Zhuang PY - 2016/12 DA - 2016/12 TI - Coordinated Contract Design for Two-Level Supply Chain Considering Supplier's Quality Level BT - 2016 International Conference on Education, Management Science and Economics PB - Atlantis Press SP - 10 EP - 13 SN - 2352-5398 UR - https://doi.org/10.2991/icemse-16.2016.3 DO - https://doi.org/10.2991/icemse-16.2016.3 ID - Zhuang2016/12 ER -