Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/188743 
Year of Publication: 
2015
Citation: 
[Journal:] Journal of Industrial Engineering and Management (JIEM) [ISSN:] 2013-0953 [Volume:] 8 [Issue:] 5 [Publisher:] OmniaScience [Place:] Barcelona [Year:] 2015 [Pages:] 1428-1474
Publisher: 
OmniaScience, Barcelona
Abstract: 
Purpose: This paper compares the efficiency of two revenue-sharing contracts and discusses the members' preference for a three-echelon supply chain with the retailer's different risk attitude. Design/methodology/approach: This paper focuses on a three-echelon supply chain with a manufacturer, a distributor and a retailer. If the retailer is risk-neutral, the coordination of the supply chain based on the two revenue-sharing contracts is comparatively studied. If the retailer is downside-risk-aversion, the supply chain performance is comparatively analyzed and a risk-sharing contract is designed to coordinate the supply chain. Finally, the two revenue-sharing contracts under the risk-sharing contract are still compared. Findings: Although both the two revenue-sharing contracts can coordinate the supply chain with a risk-neutral retailer, they are not always able to coordinate the supply chain with a risk-averse retailer. It is interesting that the supply chain with a risk-averse retailer can be coordinated by executing a designed risk-sharing contract, which is based on any kind of revenue-sharing contract. Finally, any kind of revenue-sharing contracts is not absolutely better than another. Based on the risk-sharing contract, the retailer's preference is equivalent between the two contracts; but for the distributor and the manufacturer, their preferences between the two contracts are positively related to their own profit share in the supply chain.
Subjects: 
supply chain
three-echelon
revenue-sharing contract
risk-aversion
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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