Demand disruption and coordination of supply chain via effort and revenue sharing

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

5 Scopus Citations
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Author(s)

  • Yanyan Zheng
  • Tong Shu
  • Shouyang Wang
  • Shou Chen
  • Kin Keung Lai
  • And 1 others
  • Lu Gan

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)5886-5901
Journal / PublicationApplied Economics
Volume47
Issue number54
Online published20 Nov 2015
Publication statusPublished - 2015

Abstract

This article explores the equilibrium behaviour of a basic supplier–retailer distribution channel under demand disruption via effort and revenue sharing contract. This differs from the traditional supply chain coordination model. Firstly, demand is simultaneously affected by retail price and nonprice marketing effort from manufacturers and retailers. Secondly, when the demand is disrupted, this article considers disruptions in the market scale and price sensitivity coefficient. Thirdly, the supply chain coordination model is proposed via effort and revenue sharing contract. In this way, the manufacturer reduces the wholesale price as an incentive for the retailer to share revenue. Finally, the total supply chain profit is greater with contract than no contract. This also constitutes another incentive for the players to follow the effort and revenue sharing contract.

Research Area(s)

  • demand disruption, effort and revenue sharing contract, supply chain coordination

Citation Format(s)

Demand disruption and coordination of supply chain via effort and revenue sharing. / Zheng, Yanyan; Shu, Tong; Wang, Shouyang; Chen, Shou; Lai, Kin Keung; Gan, Lu.

In: Applied Economics, Vol. 47, No. 54, 2015, p. 5886-5901.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review