NDLI: Coordination and Revenue Sharing Contract with the Newsvendor Problem

Content Provider	IEEE Xplore Digital Library
Author	Chen Hai-tao Li Chun-you
Copyright Year	2007
Description	Author affiliation: Jilin Univ., Jilin (Chen Hai-tao; Li Chun-you)
Abstract	Supply chain coordination can be achieved by adopting the revenue sharing contract. Typically in this literature, market parameters such as demand distribution and selling price are exogenous. However, incorporating these factors, we can provide an excellent vehicle for how the revenue sharing contract interacts with the newsvendor problem to influence decision-making in the supply chain. This problem is similar to the classic revenue sharing contract-design problem, except: (a) demand distribution is selling price independent; (b) both the selling price and stocking level are decision variables. We consider two different ways in which selling price affects the demand distribution: the additive fashion and multiplicative fashion. We present methodology by which the optimization problem with two decision variables can be simplified to a maximization problem over a single variable. We explore conditions that may lead the revenue sharing contract with the newsvendor problem to achieve perfect channel coordination for the additive fashion and multiplicative fashion, respectively. The results indicate that the revenue sharing contract with the newsvendor problem cannot achieve perfect coordination.
Starting Page	585
Ending Page	590
File Size	3459542
Page Count	6
File Format	PDF
ISBN	9787560322780
DOI	10.1109/ICMSE.2007.4421910
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2007-08-20
Publisher Place	China
Access Restriction	Subscribed
Rights Holder	HARBIN INSTITUTE OF TEC
Subject Keyword	Supply chain management revenue sharing Supply chains Decision making Optimization methods Conference management Elasticity contracts Vehicles Engineering management supply chain management newsvendor problem Contracts Assembly
Content Type	Text
Resource Type	Article

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
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9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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