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Profit Allocation Coordination Mechanism of Partnership in Supply Chain Based on Sharing Contract

Ershi Qi

Open publisher page 1 citations

Abstract

With the game theory of Stackelberg model,the paper presents the profit allocation model with sharing contract before and after its being recommended.From the angel of maximum profit for supply chain,the cooperative internal of sharing profit is observed between manufacturer and retailer.Profit allocation coordination mechanism of partnership in supply chain is submitted,based on sharing contract.The results show that manufacturer can coordinate the profit of the whole supply chain by using sharing profit mechanism,and this mechanism is workable in reality.

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What this paper is about

With the game theory of Stackelberg model,the paper presents the profit allocation model with sharing contract before and after its being recommended.From the angel of maximum profit for supply chain,the cooperative internal of sharing profit is observed between manufacturer and retailer.Profit allocation coordination mechanism of partnership in supply chain is submitted,based on sharing contract.The results show that manufacturer can coordinate the profit of the whole supply chain by using sharing profit mechanism,and this mechanism is workable in reality.

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Available abstract

With the game theory of Stackelberg model,the paper presents the profit allocation model with sharing contract before and after its being recommended.From the angel of maximum profit for supply chain,the cooperative internal of sharing profit is observed between manufacturer and retailer.Profit allocation coordination mechanism of partnership in supply chain is submitted,based on sharing contract.The results show that manufacturer can coordinate the profit of the whole supply chain by using sharing profit mechanism,and this mechanism is workable in reality.

Key concepts: Stackelberg competition, Supply chain, Profit sharing, General partnership, Profit (economics), Business, Microeconomics, Revenue sharing

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