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Study on Revenue-sharing Supply Chain Contract Based on Networked Manufacturing

Wanshan Wang

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Abstract

According to the characteristic of networked manufacturing, the supply chain revenue-sharing contract model was established. The punishment factor was imported to the model. It was used to analyze the profit loss in the game theory process. Based on the manufacture leading revenue-sharing contract, the two-stage supply chain which is composed of manufacturer and retailer was researched. Through Stackelberg game analysis, some factors such as revenue-sharing proportion, order quantity, wholesale price were discussed. These factors can influence the supply chain profits. Then the coordination strategies were found under the dispersed supply chain and integrated supply chain. By using MATLAB-based numerical simulation, the game results were got in this kind of contract. The simulation results prove that the punishment factor can greatly influence the supply chain profits.

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What this paper is about

According to the characteristic of networked manufacturing, the supply chain revenue-sharing contract model was established. The punishment factor was imported to the model. It was used to analyze the profit loss in the game theory process. Based on the manufacture leading revenue-sharing contract, the two-stage supply chain which is composed of manufacturer and retailer was researched. Through Stackelberg game analysis, some factors such as revenue-sharing proportion, order quantity, wholesale price were discussed. These factors can influence the supply chain profits. Then the coordination strategies were found under the dispersed supply chain and integrated supply chain. By using MATLAB-based numerical simulation, the game results were got in this kind of contract. The simulation results prove that the punishment factor can greatly influence the supply chain profits.

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Available abstract

According to the characteristic of networked manufacturing, the supply chain revenue-sharing contract model was established. The punishment factor was imported to the model. It was used to analyze the profit loss in the game theory process. Based on the manufacture leading revenue-sharing contract, the two-stage supply chain which is composed of manufacturer and retailer was researched. Through Stackelberg game analysis, some factors such as revenue-sharing proportion, order quantity, wholesale price were discussed. These factors can influence the supply chain profits. Then the coordination strategies were found under the dispersed supply chain and integrated supply chain. By using MATLAB-based numerical simulation, the game results were got in this kind of contract. The simulation results prove that the punishment factor can greatly influence the supply chain profits.

Key concepts: Revenue sharing, Supply chain, Stackelberg competition, Profit (economics), Revenue, Business, Game theory, Industrial organization

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