Analysis of a Revenue Sharing Contract in a Reverse Supply Chain

Date

2017-09-06

Author

Bakal, İsmail Serdar

Metadata

Show full item record

Item Usage Stats

95
views

0
downloads

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 reverse supply chain, consisting of a remanufacturer and a collector in a single-period setting. The collector is in charge of acquiring used products from end customers by paying an acquisition price per unit of used products. The collected products are then sold to the remanufacturer who faces a random demand for remanufactured products. We first consider the centralized setting and derive the optimal acquisition price. Then, we study the decentralized setting under remanufacturer’s lead and collector’s lead. In both cases, we demonstrate that as long as the total cost of reverse activities are constant, the channel performance is independent of how these costs are distributed among the parties. Next, we focus on coordination issues and show that there exists a menu of revenue sharing contracts that can coordinate the reverse supply chain and allows for arbitrary allocation of total channel profit between the parties.

URI

http://www.or2017.de/scientific-program/schedule/20171002_program_guide_book_of_abstracts.pdf
https://hdl.handle.net/11511/76340

Conference Name

International Conference on Operations Research, (6 - 08 Eylül 2017)

Collections

Department of Industrial Engineering, Conference / Seminar

Suggestions

OpenMETU
Core

Analysis of price-only and revenue sharing contracts in a reverse supply chain Biazaran, Majid; Bakal, İsmail Serdar; Department of Industrial Engineering (2016) 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 remanufacture...
INDUSTRIAL ADOPTION OF MODEL-BASED SYSTEMS ENGINEERING: AN INVESTIGATION WITHIN THE DEFENCE INDUSTRY Bayramoğlu, Alitan; Özkan Yıldırım, Sevgi; Department of Bioinformatics (2022-1-24) Increasing competition in contemporary industrial settings drive organizations to unceasingly seek ways to improve the overall quality of their products and services, and the processes followed in order to procure them. Model-Based Systems Engineering (MBSE) has been put forth with promises to remedy shortcomings constituted by legacy document-based engineering approaches. However, for an organization to fully adopt MBSE, it must overcome several human, financial, organizational and technological factors. T...
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...
Soft Systems Methodology for design process improvement Bayraktaroğlu, Bengül; Özkan Yıldırım, Sevgi; Department of Information Systems (2018) Organizations from different business sectors, which are certified by some standardization organizations, are increasingly prioritizing the process improvement to raise their product's quality. The process improvement in these organizations has focused principally on the refinement of existing processes to improve. This thesis study describes the application of Soft Systems Methodology (SSM) for engineering design process improvement in an organization. In the concept of thesis study, it will lead to identi...
Analysis of organisational routines to understand change in construction: the case of Turkish construction industry Daneshvar, Maryam; Dikmen Toker, İrem; Birgönül, Mustafa Talat; Department of Civil Engineering (2011) Surrounding business environment, opportunities and requirements of organizations are under constant change. According to the evolutionary economics, organizations continuously make efforts to adapt themselves in line with changing circumstances of environments where they operate. In exploration of organizational change, organizational routines are recognized as the key analysis units. It is because when a change plan is required, routines undergo design or redesign processes. The construction industry lite...

Citation Formats

İ. S. Bakal, “Analysis of a Revenue Sharing Contract in a Reverse Supply Chain,” presented at the International Conference on Operations Research, (6 - 08 Eylül 2017), Berlin, Almanya, 2017, Accessed: 00, 2021. [Online]. Available: http://www.or2017.de/scientific-program/schedule/20171002_program_guide_book_of_abstracts.pdf.