Analysis of price-only and revenue sharing contracts in a reverse supply chain

Download

index.pdf

Date

2016

Author

Biazaran, Majid

Metadata

Show full item record

Item Usage Stats

218
views

65
downloads

Original Equipment Manufacturers prefer to fully or partially outsource take-back activities, such as used product acquisition and handling, since dealing with reverse flow of goods is not their core competency. However, outsourcing may cause the supply chain to suffer from local optimization that results from decentralization. In such cases, different forms of contracts are offered to reduce the effects of decentralization. In this study, we consider a two-echelon reverse supply chain where a remanufacturer, facing a random demand, orders from a collector, which is in charge of used product acquisition. We analyze the decentralized decision making process under both the remanufacturer’s and collector’s lead considering both price-only and revenue sharing contracts. We demonstrate that there exists a wholesale price that can coordinate reverse supply chain and allocate positive profits for both parties. We also show that there exist a menu of revenue sharing contracts that can also coordinate reverse supply chain, which provides more flexibility for negotiation between parties compared to the wholesale price-only contact. Furthermore, we investigate the effects of problem parameters on the optimal decentralized decisions and coordinating contracts through an extensive numerical study.

Subject Keywords

Business logistics., Materials management., Marketing, Industrial management.

URI

http://etd.lib.metu.edu.tr/upload/12620175/index.pdf
https://hdl.handle.net/11511/25810

Collections

Graduate School of Natural and Applied Sciences, Thesis

Suggestions

OpenMETU
Core

Joint quantity flexibility under market information update Oskay, Mine Gülden; Bakal, İsmail Serdar; Department of Industrial Engineering (2013) In this study, we consider a decentralized supply chain consisting of a single retailer and a single manufacturer who manufacture two products in a given single period. The retailer commits to purchase an aggregate order quantity for the products at the beginning of the period before information on the market condition is revealed. Accordingly, the manufacturer then determines its initial production quantities for the products. Once market condition is revealed the retailer allocates its initial order to in...
Analysis of a Revenue Sharing Contract in a Reverse Supply Chain Bakal, İsmail Serdar (2017-09-06) ginal Equipment Manufacturers that engage in the remanufacturing business fully or partially outsource take back activities. Although outsourcing reverse activities seems to be a reasonable option, it may result in significant inefficiencies due to decentralization. Several contracting mechanisms have been proposed to reduce the inefficiencies in the forward chains. However, the effectiveness of these contracts has not been fully investigated in reverse chains. In this study, we investigate a two-echelon...
Collaboration environments for construction: Implementation case studies Erdogan, Bilge; Anumba, Chimay J.; Bouchlaghem, Dino; Nielsen, Yasemin (American Society of Civil Engineers (ASCE), 2008-10-01) Although emerging technologies offer the construction industry many opportunities for computer supported collaboration environments, the companies adopting these technologies usually fail in achieving the full benefits from their implementations. The reason for this is found to be focusing too much on the technical factors and ignoring or underestimating the factors related to change, implementation, human and organizational factors, and the roles of the management and end users. Each new information techno...
Analysis of a two-echelon multi-item inventory system with postponement Eryılmaz, Hande; Meral, Fatma Sedef; Department of Industrial Engineering (2010) Increased product proliferation and global competition are forcing companies within the supply chain to adopt new strategies. Postponement is an effective strategy that allows companies to be agile and cost effective in dealing with the dynamics of global supply chains. Postponement centres around delaying activities in the supply chain until real information about the market is available, which reduces the complexity and uncertainty of dealing with a proliferation of products. A two-echelon divergent suppl...
Analyzing the effects of inventory cost setting rules in a disassembly and recovery environment Akcali, Elif; Bayındır, Zeynep Pelin (Informa UK Limited, 2008-01-01) In this study we consider a disassembly and recovery facility receiving end-of-life products and facing demand for a specific part that is disassembled from the product and then recovered. The disassembly and recovery operations can be either performed before hand, or upon customer arrival. In the latter case, a discount on the selling price is applied to compensate the customer for waiting for the completion of the disassembly and recovery operations. One of the dificulties faced in planning for such a sys...

Citation Formats

M. Biazaran, “Analysis of price-only and revenue sharing contracts in a reverse supply chain,” M.S. - Master of Science, Middle East Technical University, 2016.