Revenue-sharing Contracts in Assembly Systems with Fuzzy Demand

This paper considers revenue-sharing contract in assembly systems with one assembler and multiple manufacturers in a one-period setting where the assembler faces fuzzy demand. Under such a contract, the assembler does not pay the manufacturers wholesale price for each unit component purchased but pays them a percentage of the revenue generated by the assembler. The paper also compares the revenue-sharing contract leaded by the assembler with the centralized setting that all the players in the assembly systems make decision together. Some properties of the contract are proposed and the practicality is obvious for assembly management in a supply chain with fuzzy demand.