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Study of Price Discount Contract on Coordinating Three-Level Supply Chain

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TLDR
In this article, the authors proposed an approach by adding out-of-stock cost parameters which improves price discount contract of three-level supply chain, which can reach coordination and the optimal profits of the supply chain can be achieved.
Abstract
This paper studies price discount contract coordination of a three-level supply chain. Under the stochastic market demand, previous price discount contract did not consider shortage cost. We present an approach by adding out-of-stock cost parameters which improves price discount contract of three-level supply chain. The supply chain can reach coordination and the optimal profits of the supply chain can be achieved. Finally, an example illustrating comprehensive evolution method is simple and effective.

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Journal ArticleDOI

Retailer Stackelberg game in a supply chain with pricing and service decisions and simple price discount contract.

TL;DR: Analysis of the optimal equilibrium solutions and the results of the numerical examples show that if a manufacturer chooses the appropriate range of discount rate, he will gain more profit than when there is no discount given to the retailer.
References
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Journal ArticleDOI

Optimal Pricing and Return Policies for Perishable Commodities

TL;DR: It is proven, however, that a pricing and return policy in which a manufacturer offers retailers a partial credit for all unsold goods can achieve channel coordination in a multi-retailer environment.
Journal ArticleDOI

The Quantity Flexibility Contract and Supplier-Customer Incentives

TL;DR: In this article, the authors consider a supply chain consisting of two independent agents, a supplier e.g., a manufacturer and a retailer, the latter serving an uncertain market demand.
Journal ArticleDOI

Decentralized Supply Chains with Competing Retailers Under Demand Uncertainty

TL;DR: This paper investigates the equilibrium behavior of decentralized supply chains with competing retailers under demand uncertainty and designs contractual arrangements between the parties that allow the decentralized chain to perform as well as a centralized one.
Journal ArticleDOI

Note. the Role of Returns Policies in Pricing and Inventory Decisions for Catalogue Goods

TL;DR: In this article, the effect of return policies on both a retailer's and a manufacturer's profits is examined. But they focus on the effect that such return policies have on both the retailer and the manufacturer.
Journal ArticleDOI

Coordinating a three-level supply chain with quantity discounts

TL;DR: In this paper, the authors consider a three-level supply chain and explore the benefits of using quantity discounts on both ends of the supply chain to decrease costs, and they show that incorporating quantity discounts into both ends can significantly decrease costs compared to concentrating only on the lower levels.
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