Service supply chain coordination mechanism research based on compensation-revenue sharing contract mode

Abstract

This paper discusses specific contracts model for a three-stage service supply chain which consists of a service demander, service integration supplier and service suppliers with a contract service supplier and some temporary suppliers. The most important contribution on this paper is that it is proposed a joint contract of compensation and revenue sharing for the mathematical model which contains other two contracts and compared the profits node companies obtain. In the paper, the goal is to implement service supply chain enterprise strategy, finally reach the coordination ability of the whole supply chain, obtain the optimal investment and the best expected profits. It is proved that capacity has connection with price, cost and contract parameters. Paper also considers the optimal decisions for enterprises of compensation-revenue sharing contract with other two contracts. The results show that enterprises can obtain optimal profits simultaneously at approximate capacity interval value and demander gets more profits from any contract modes than service integrator. And service integrator holds the chance to bargain with demander for a better transaction.