Highlights The RSC fails to coordinate the supply chain while the LQDC does under benchmark. The two contracts cannot fully coordinate the supply chain with demand disruptions. The LQDC coordinates the supply chain when demand increases or decreases greatly. The RSC can coordinate the supply chain when the demand increases slightly. The demand disruptions can promote the supply chain coordination.
Abstract In this paper, we consider supply chain coordination with a revenue sharing contract (RSC) and a linear quantity discount contract (LQDC) in a fashion supply chain with demand disruptions. The situation without demand disruptions is considered as the benchmark. In the benchmark, we find that, the RSC fails to coordinate the supply chain while the LQDC does. We also find that demand disruptions can promote supply chain coordination. We then find that, in some cases, the RSC (LQDC) fails to coordinate the supply chain whereas the LQDC (RSC) can do so.
Coordination of a fashion supply chain with demand disruptions
2020-01-04
Article (Journal)
Electronic Resource
English
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