Annals of Operations Research

, Volume 257, Issue 1–2, pp 587–612 | Cite as

Coordination of supply chain with a dominant retailer under government price regulation by revenue sharing contracts

S.I.: Innovative Supply Chain Optimization
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Abstract

As the demands of some important products such as oil, gas, and agricultural commodities are disrupted, the government often regulates the retail price that includes impositions of a price ceiling and a price floor. In this paper, we analyze the coordination of a supply chain with a dominate retailer under the government price regulation policy by a revenue sharing contract after demand disruption. First, we characterize the optimal decisions of the supply chain under normal circumstance by the revenue sharing contract as a benchmark. Then, when the demand is disrupted, we redesign the contract to coordinate the supply chain and obtain the corresponding revenue sharing contract in different scenarios. Finally, we give some numerical examples to illustrate our theoretical results and explore the impacts of government price regulations on the coordination mechanism.

Keywords

Supply chain coordination Price regulation Dominant retailer Revenue sharing contract Demand disruption 

Notes

Acknowledgments

This research was partially supported by the National Natural Science Foundation of China under Grant Nos. 71171011, 71372195, 71571011 and the New Century Excellent Talents in Universities scheme (NCET-12-0756).

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Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  1. 1.School of Economics and ManagementBeijing University of Chemical TechnologyBeijingChina
  2. 2.Faculty of EngineeringUniversity of WindsorWindsorCanada

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