We study a decentralized supply chain with one supplier offering buyback contract to one retailer who postpones retail pricing decision after demand realization. We find some mild conditions on demand distribution that guarantee the existence of a unique equilibrium when demand is additive in uncertainty. We discuss the impact of buyback contract on operational decisions and supply chain performance. Different from the game with multiplicative demand, the equilibrium buyback ratio, profit allocation ratio between supply chain members and the channel efficiency depend on demand distribution.
|Publication status||Published - 15 Jul 2014|
|Event||20th Conference of the International Federation of Operational Research Societies - Barcelona International Convention Center, Barcelona, Spain|
Duration: 13 Jul 2014 → 18 Jul 2014
|Conference||20th Conference of the International Federation of Operational Research Societies|
|Period||13/07/14 → 18/07/14|
SHANG, W. (2014). Buyback Contract and Price Postponement in a Decentralized Supply Chain with Additive and Price-Dependent Demand. 20th Conference of the International Federation of Operational Research Societies, Barcelona, Spain.