Closed-loop supply chain coordination by contracts under governmemt subsidy

Abstract

A two-echelon neutral closed loop supply chain coordination model under government subsidy was established by revenue sharing contract and quantity discount contract, and the impacts of the two contracts were analyzed in the supply chain channel, which showed that the contracts could eliminate the double marginalization, and hence the closed-loop supply chain under government subsidy could achieve coordination. Also, the bound and rule of the contract parameters were given. Moreover, the two contracts were compared from the aspects of design and implement cost.