Response Time-Based Supply Chain Contract Coordination Under Time-Sensitive Demand

It is important problems for supply chain management that supply chain´s firms cooperate and coordinate by which contract to achieve optimum systematic objectives in distributed supply chain currently. In this research, we move beyond conceptual analysis by developing a general cooperation contract model and a benefit-sharing contract model under uncertain response time and time-sensitive demand in a two-stage supply chain system. These models provide insights into the impact of two contracts on supply chain coordination by comparing the supply chain gross benefit. Finally, we focus on the partition proportion of gross benefit in supply chain based on node firm´s risk preference under benefit-sharing contract. Our results indicate who having higher risk-preference degree can gain more profit.