Annals of Operations Research

, Volume 201, Issue 1, pp 17–38 | Cite as

Contracting with demand uncertainty under supply chain competition

  • Xingzheng Ai
  • Jing ChenEmail author
  • Jianhua Ma


We examine supply chain contracts for two competing supply chains selling a substitutable product, each consisting of one manufacturer and one retailer. Both manufacturers are Stackelberg leaders and the retailers are followers. Manufacturers in two competing supply chains may choose different contracts, either a wholesale price contract in which the retailer’s demand forecasting information is not shared, or a revenue-sharing contract in which the retailer’s demand forecasting information is shared. Under supply chain competition and demand uncertainty, we identify which contract is more advantageous for each supply chain, and under what circumstances.


Demand uncertainty Supply chain competition Information sharing Revenue-sharing contract Wholesale price contract 



The authors gratefully acknowledge the support grants from the National Natural Science Foundation of China (NSFC), #70772070 and #70932005, and from the Natural Sciences and Engineering Research Council of Canada.


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Copyright information

© Springer Science+Business Media, LLC 2012

Authors and Affiliations

  1. 1.School of Economics and ManagementUniversity of Electronic Science and Technology of ChinaChengduChina
  2. 2.Faculty of Business and EconomicsUniversity of WinnipegWinnipegCanada

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