Skip to main content

Revenue Sharing Contract Design with Marketing Strategy Types of Suppliers

  • Conference paper
  • First Online:
LISS 2014

Abstract

In this article, research revenue sharing contract design when a supplier is leader and a retailer is follower in a two echelon supply chain. We differ from previous research all assume the supplier and retailer both profit oriented by distinguishing the marketing strategies of supplier. The marketing strategies include two types: profit oriented and sales oriented. The analysis results show the revenue sharing contract can achieve supply chain coordination and Pareto optimality in the supply chain with profit oriented suppliers; In the supply chain with sales oriented supplier, revenue sharing contract can obtain supply chain collaboration solutions and the Pareto improvement for the supplier and the retailer when the retailer’s order quantity is in a certain range. But only get the supply chain collaboration solution when the retailer’s order quantity is beyond the range.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 259.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 329.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Cachon GP, Lariviere MA (2001) Turning the supply chain into a revenue chain. Harvard Bus Rev 79(3):20–21

    Google Scholar 

  • Chen JX, Jin L (2004) Mathematical analysis (the second edition). Higher Education Press, Beijing

    Google Scholar 

  • Ding H, Guo B, Liu Z (2011) Information sharing and profit allotment based on supply chain cooperation. Int J Prod Econ 133:70–79

    Article  Google Scholar 

  • Hezarkhani B, Kubiak W (2010) Coordinating contracts in SCM: a review of methods and literature. Decis Mak Manuf Serv 4(16):5–28

    Google Scholar 

  • Krishnan H, Winter RA (2011) On the role of revenue-sharing contracts in supply chains. Oper Res Lett 39:28–31

    Article  Google Scholar 

  • Lai XH, Wang WP (2013) Therevenue sharing contract design in the new product developing through the complementaryand development efforts of vertical cooperation. J Manage 10(3):430–437

    Google Scholar 

  • Li JC, Zhou YW, Xiao D (2013) Consider loss aversion one-to-manyof the supply chain revenue sharing contract. J Manage 2(16):71–81

    Google Scholar 

  • Linh CT, Hong Y (2009) Channel coordination through a revenue sharing contract in a two-period newsboy problem. Eur J Oper Res 198:822–829

    Article  Google Scholar 

  • Mortimer JH (2002) The effects of revenue-sharing contracts on welfare in vertically-separated markets: evidence from the video rental industry. Harvard University, Boston

    Google Scholar 

  • Shapiro E (1998) Blockbuster’s return is on fast forward, says CEO with big plans for rentals. Wall Street J 3:16–18

    Google Scholar 

  • Sheu JB (2011) Marketing-driven channel coordination with revenue-sharing contracts under price promotion to end-customers. Eur J Oper Res 214(2):246–255

    Article  Google Scholar 

  • Wang YT, Guo XY (2011) The supply chain coordination model with revenue sharing contract in dynamic market environment. Syst Eng Theory Methodol Appl 20(4):434–440

    Google Scholar 

  • Yu S, Liu J, Zhang H (2013) The optimal decision and revenue sharing contractunder retailers’ price competition. Control Decis 28(2):269–278

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Hua He .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

He, H., Fang, X., Du, Y. (2015). Revenue Sharing Contract Design with Marketing Strategy Types of Suppliers. In: Zhang, Z., Shen, Z., Zhang, J., Zhang, R. (eds) LISS 2014. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-43871-8_42

Download citation

Publish with us

Policies and ethics