Title :
Research on buy-back contract with sales effort cost sharing
Author :
Bai, Shi-zhen ; Ni, Juan
Author_Institution :
Sch. of Manage., Harbin Univ. of Commerce, Harbin, China
Abstract :
A model of buy-back contract with punishment cost and the strategy of effort cost sharing is set up. Based on the buy-back contract, two buy-back contracts are proposed. One is that the sales effort has decisive effect, the other is that sales effort has random effect. The method of sales effort cost sharing is used in the two buy-back contracts in order to achieve the supply chain coordination and make the total profit of supply chain maximum. Finally, the effectiveness of buy-back contracts with effort cost sharing is certificated by the two numerical examples.
Keywords :
costing; retailing; sales management; supply chain management; buy-back contract; decisive effect; punishment cost; random effect; sales effort cost sharing; supply chain coordination; total profit; Business; Contracts; Cost function; Density functional theory; Electronic mail; Information analysis; Manufacturing processes; Marketing and sales; Supply chains; Virtual manufacturing; buy-back contract; sales effort cost sharing; supply chain coordination;
Conference_Titel :
Control and Decision Conference, 2009. CCDC '09. Chinese
Conference_Location :
Guilin
Print_ISBN :
978-1-4244-2722-2
Electronic_ISBN :
978-1-4244-2723-9
DOI :
10.1109/CCDC.2009.5191944
