Research on the Coordination of ThreeStage Supply Chain Based  on Buy-Back Contracts

Abstract

Abstract: The existing studies show that a two-stage supply chain with buy-back can be coordinated by buy-back contracts. However, it is not known that if this result can be applied to a three-stage supply chain. To answer this question, a three-stage supply chain composed of a manufacturer, a distributor, and a retailer is considered in this paper. A mathematical model is developed to describe the impact of buyback contracts between the manufacturer and distributor, and the distributor and retailer on the supply chain coordination. With this model, it is shown that the three-stage supply chain can be coordinated to be “win-win” by tuning the contract parameters. Further, with this model, conditions under which the supply chain can be coordinated to be “win-win” are presented. The effectiveness of the proposed method is demonstrated by a numerical example.

Key words: buy-back contract, three-stage supply chain, coordination, win-win

Liu Hao. Research on the Coordination of ThreeStage Supply Chain Based on Buy-Back Contracts[J]. Industrial Engineering Journal , 2011, 14(3): 44-47.

References

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Research on the Coordination of ThreeStage Supply Chain Based on Buy-Back Contracts

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