Abstract
Supply chain (SC) coordination can be pursued by adopting a centralized or decentralized decision-making approach. The former option occurs when there is a unique decision maker in the SC, the latter when several independent actors make decision at the different SC stages. SC contracts are a useful tool to make the several SC actors of a decentralized setting behave coherently among each other, as if the chain were operated in a centralized fashion. In this paper, we propose a model of an SC contract aimed at coordinating a three-stage SC, which is based on the revenue sharing mechanism. This model allows the system efficiency to be achieved as well as it could improve the profits of all the SC actors, by tuning the contract parameters.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
