Verification on the Integration of Buyback Contract and Revenue Sharing Contract

Abstract

With the development of economy and the improvement of management methods, the supply chain management (SCM) has gradually been accepted by managers, and the supply chain contract has become one of the most important management methods. Meanwhile, e-business has been the main platform of business, which reduces the distance between the upstream members and the downstream members of the supply chain, and the electronic supply chain (E-SC) has become the hot spot of the SCM research. The paper will verify the integration between the buyback contract which is always used in the traditional supply chain and the revenue sharing contract which is much more used in the e-supply chain based on the research of the supply chain’s expected profit, analyze the relevance of the two contracts on the supply chain coordination effect, and find out the conditions that the two contracts make the same effect on supply chain coordination, and integrate the two contracts.