Supply chain coordination under vendor-managed inventory with consignment-based revenue-sharing contract

The paper deals with the problem of decentralized supply chain coordination in a single-retailer Stackelberg and a single-supplier over a multi-period planning horizon under VMI system with consignment and revenue-sharing agreements, subject to deteriorated goods and multivariate demand function. We formulate the profit-maximization issue and develop the solution procedures under cooperative and non-cooperative policies. Our analysis reveals that the benefit generated from cooperative policy can significantly achieve channel-wide profit improvements.