Coordination Mechanism for Supply Chain Considering Cost-sharing Contracts under C2B Mode

Abstract

Abstract:

The paper studies a supply chain that consists of one C2B E-business firm and one supplier in which supply chain members make decisions under four different scenarios:centralized decision, a wholesale price contract, a quality-dependent wholesale price contract and a cost-sharing contract. And this paper investigates the impact of customization cost coefficient and cost sharing coefficient on decision variables such as the customization effort, the quality effort and the profit of supply chain members. The results show that, when the customization cost coefficient exceeds a certain threshold, the wholesale price contract cannot be executed. But the cost-sharing contract still works and could achieve Pareto improvement of supply chain members. Particularly, if the C2B E-business firm is a leader of supply chain, when the customization cost coefficient exceeds a certain threshold, both wholesale price contract and cost-sharing contract cannot be executed. But the quality-dependent wholesale price contract can coordinate the decision of the members of the supply chain and reach the level of centralized decision.

Key words: C2B, cost-sharing contract, supply chain coordination, customization effort

Xiao Di, Kuang Xiansheng, Zhu Yali, Zhang Xiaopeng. Coordination Mechanism for Supply Chain Considering Cost-sharing Contracts under C2B Mode[J]. , 2019, 31(9): 255-265.

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