Home            Contact us            FAQs
    
      Journal Home      |      Aim & Scope     |     Author(s) Information      |      Editorial Board      |      MSP Download Statistics

     Advance Journal of Food Science and Technology


Capability Coordination in Agricultural Products Logistics Service Supply Chain with Revenue-sharing Contract

1Meiling He, 2Qifan Hu and 1Xiaohui Wu
1School of Automotive and Traffic Engineering, Jiangsu University, Zhenjiang 212013, China
2College of Business Administration, Nanchang Institute of Technology, Nanchang 330099, China
Advance Journal of Food Science and Technology  2015  7:467-471
http://dx.doi.org/10.19026/ajfst.8.1546  |  © The Author(s) 2015
Received: August ‎31, ‎2014  |  Accepted: September ‎20, ‎2014  |  Published: June 20, 2015

Abstract

To solve the capability coordination in logistics service based on the agricultural products industry, a two-stage agricultural products Logistics Service Supply Chain (LSSC) was established with one agricultural products logistics service integrator and one functional logistics service provider. Based on the non-storage property of logistics service capability, the revenue-sharing contract model was built under the uncertain demand. The optimal logistics capability order quantity and the revenue-sharing coefficient were calculated when the agricultural products LSSC achieved coordination. Revenue-sharing contract can coordinate the agricultural products LSSC effectively compared with no contract. A numerical simulation was taken by MATLAB 7.0. The change of purchase price has no influence on the optimal logistics capability order quantity and the expected profit of agricultural products LSSC. It achieves a redistribution of members’ profits. With the increases of penalty cost, the optimal logistics capability order quantity and the expected profit of provider increase, while the expected profit of integrator and agricultural products LSSC decrease.

Keywords:

Agricultural products, capability coordination, logistics service supply chain, revenue-sharing contract,


References

  1. Cachon, G.P., 2003. Supply Chain Coordination with Contracts. In: Graves, S. and T. de Kok
    CrossRef    
  2. Cachon, G.P. and M.A. Lariviere, 2005. Supply chain coordination with revenue-sharing contracts: Strengths and limitations. Manage. Sci., 51: 30-44.
    CrossRef    
  3. Cachon, G.P. and A.G. Kok, 2010. Competing manufacturers in a retail supply chain: On contractual form and coordination. Manage. Sci., 56: 571-589.
    CrossRef    
  4. Gerchak, Y. and Y. Wang, 2004. Revenue-sharing vs. wholesale-price contracts in assembly systems with random demand. Prod. Oper. Manag., 13: 23-33.
    CrossRef    
  5. Krishnan, H. and R.A. Winter, 2011. On the role of revenue-sharing contracts in supply chains. Oper. Res. Lett., 39: 28-31.
    CrossRef    
  6. Kunter, M., 2012. Coordination via cost and revenue sharing in manufacturer-retailer channels. Eur. J. Oper. Res., 216: 477-486.
    CrossRef    
  7. Van der Rhee, B., J.A.A. van der Veen, V. Venugopal and V.R. Nalla, 2010. A new revenue sharing mechanism for coordinating multi-echelon supply chains. Oper. Res. Lett., 38: 296-301.
    CrossRef    
  8. Yao, Z., S.C. Leung and K.K. Lai, 2008a. Manufacturer's revenue-sharing contract and retail competition. Eur. J. Oper. Res., 186: 637-651.
    CrossRef    
  9. Yao, Z., S.C. Leung and K.K. Lai, 2008b. The effectiveness of revenue-sharing contract to coordinate the price-setting newsvendor products' supply chain. Supply Chain Manag., 13: 263-271.
    CrossRef    

Competing interests

The authors have no competing interests.

Open Access Policy

This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.

Copyright

The authors have no competing interests.

ISSN (Online):  2042-4876
ISSN (Print):   2042-4868
Submit Manuscript
   Information
   Sales & Services
Home   |  Contact us   |  About us   |  Privacy Policy
Copyright © 2024. MAXWELL Scientific Publication Corp., All rights reserved