Due to stochastic demand during the pandemics and uncertain environment, the vendor and the retailer share their risks and benefits by applying revenue sharing and markdown policy in order to reduce the risks and achieve a win-win contract. Three supply chain coordination policies, decentralized policy, centralized vendor-retailer policy and centralized vendor-retailer revenue sharing policy are developed. An example with uniform probability demand is used to illustrate the model. The result shows that the revenue sharing contract is more attractive for the retailer, and the centralized policy is more attractive for the vendor. Therefore, price markdowns are used to share benefits. The sensitivity analysis shows that the number of markdowns is not sensitive to the variances in the uniform demand distribution. A win-win contract based on a revenue sharing and price markdown is developed. A case example shows that the mechanism of price markdowns and revenue sharing contract affect the optimal supply chain profit in view of the pandemics and uncertain environment.
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DOI : 10.1051/ro/2022076
Keywords: Inventory, pandemics, markdown prices, Price dependent demand, revenue sharing
@article{RO_2022__56_3_1807_0,
author = {Huang, Yen-Deng and Widyadana, Gede Agus and Wee, Hui Ming and Blos, Mauricio Fontoura},
title = {Revenue and risk sharing in view of uncertain demand during the pandemics},
journal = {RAIRO. Operations Research},
pages = {1807--1821},
year = {2022},
publisher = {EDP-Sciences},
volume = {56},
number = {3},
doi = {10.1051/ro/2022076},
mrnumber = {4445945},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2022076/}
}
TY - JOUR AU - Huang, Yen-Deng AU - Widyadana, Gede Agus AU - Wee, Hui Ming AU - Blos, Mauricio Fontoura TI - Revenue and risk sharing in view of uncertain demand during the pandemics JO - RAIRO. Operations Research PY - 2022 SP - 1807 EP - 1821 VL - 56 IS - 3 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2022076/ DO - 10.1051/ro/2022076 LA - en ID - RO_2022__56_3_1807_0 ER -
%0 Journal Article %A Huang, Yen-Deng %A Widyadana, Gede Agus %A Wee, Hui Ming %A Blos, Mauricio Fontoura %T Revenue and risk sharing in view of uncertain demand during the pandemics %J RAIRO. Operations Research %D 2022 %P 1807-1821 %V 56 %N 3 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2022076/ %R 10.1051/ro/2022076 %G en %F RO_2022__56_3_1807_0
Huang, Yen-Deng; Widyadana, Gede Agus; Wee, Hui Ming; Blos, Mauricio Fontoura. Revenue and risk sharing in view of uncertain demand during the pandemics. RAIRO. Operations Research, Tome 56 (2022) no. 3, pp. 1807-1821. doi: 10.1051/ro/2022076
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