Study on efficiency of supply chain based on single revenue sharing contract and double contracts combination
Hongtao Yang, Jianbang Du
Abstract
Hongtao Yang, Jianbang Du
Abstract
Supply chain contract plays an important role in the coordination of members of supply chain. The existing application of supply chain contracts is mainly based on a single contract, which exist some limitations. From the point of combination of supply chain contracts, we establish two models based on system dynamics, one is revenue sharing contract model and the other is the combination model consisting of quantity discount contract and revenue sharing contract. Then, we use Vensim to simulate. The results show that the combination model is more conducive to the overall efficiency of the supply chain. This paper provides a new way for the study on supply chain coordination.
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Supply chain contract plays an important role in the coordination of members of supply chain. The existing application of supply chain contracts is mainly based on a single contract, which exist some limitations. From the point of combination of supply chain contracts, we establish two models based on system dynamics, one is revenue sharing contract model and the other is the combination model consisting of quantity discount contract and revenue sharing contract. Then, we use Vensim to simulate. The results show that the combination model is more conducive to the overall efficiency of the supply chain. This paper provides a new way for the study on supply chain coordination.
Key concepts: Supply chain, Revenue sharing, Revenue, Contract management, Business, Supply chain management, Point (geometry), Industrial organization