Coordinated Contract in Reverse Supply Chain with Collection Volume Agreement

Aiming at the reverse bullwhip effect in reverse supply chain (RSC), a non-cooperative stackelberg model is set up with agreed collection volume. The centralized, decentralized and coordinated systems are brought out successively and the operation mechanism is analyzed afterwards. With the developed expense-sharing contract as the object of the study, the fact is proved that the RSC with collection volume agreement is more efficient. The numerical analysis is provided lastly. Such a contract not only extracts the maximal profit of the RSC, but can also improve the profit of each RSC member by tuning the contract parameters.