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9 September 2019 Combined Contract Model for Aquatic Processing Product Supply Chain with Effort Dependent Stochastic Demand
Ning Ma, Jinyu Li
Author Affiliations +
Abstract

Ma, N.; Li, J.-Y., 2019. Combined Contract Model for Aquatic Processing Product Supply Chain with Effort Dependent Stochastic Demand. In: Gong, D.; Zhu, H., and Liu, R. (eds.), Selected Topics in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 94, pp. 813–817. Coconut Creek (Florida), ISSN 0749-0208.

Coordination of aquatic processing product supply chain is very important to reduce deterioration for business enterprises. In factual conditions, the promotional effort is one of the most important factors which influence the market demand. This paper considers the issue of coordination for three-level supply chain consisting of one product supplier, one distributor and one retailer who faces the stochastic demand depending on the promotional effort. Firstly, the paper gives the condition which can make the supply chain coordinate and analyze the reason why single buyback contract can't coordinate the supply chain in that case. Then the author designs a combined contract with the buyback and sales reward and penalty contract to solve the problem. We find that the supply chain can be coordinated with the combined contract properly designed. Finally, get the parameter numerical simulation analysis and reveal the effectiveness of the combined contract.

©Coastal Education and Research Foundation, Inc. 2019
Ning Ma and Jinyu Li "Combined Contract Model for Aquatic Processing Product Supply Chain with Effort Dependent Stochastic Demand," Journal of Coastal Research 94(sp1), 813-817, (9 September 2019). https://doi.org/10.2112/SI94-161.1
Received: 20 January 2019; Accepted: 29 March 2019; Published: 9 September 2019
KEYWORDS
combined contract
effort-related demand
supply chain coordination
three-level supply chain
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