Abstract: A supply chain formed by a manufacturer and a retailer for single perishable product is considered in this paper. Based on the Newsvendor model of singleperiod stochastic inventory problem, comparative study is conducted for three kinds of supply chain contracts: the buyback contract, revenue sharing contract, and quantity discount contract. For these contracts, optimal ordering policy for retailer and expected profits for both retailer and manufacturer are derived, respectively. Then, the applicability conditions of these contracts are analyzed. With the proposed method, as an industrial case, a leather cloth production and sale supply chain is presented to verify the results obtained in this paper. This study reveals the mechanism for understanding the applicability of different supply chain contracts.

Key words: supply chain, supply chain contract, ordering policy, contract applicability