Research On Revenue Sharing Contract Of Three-echelon Reverse Supply Chain

In recent years, because of people’s environmental protection consciousness’s enhancementand for the attention of the economical resource, manufacturing enterprises begin to pay closeattention to reverse supply chain which focuses on product recycling. Enterprises collect wasteproducts used by the consumer, and after remanufacturing，they make these products available toconsumers. The enterprises achieve the economic benefits, and at the same time they also increasethe social benefit and ecological benefit. Reverse supply chain is a totally different and newmanagement idea focuses on sustainable development. Due to the "double marginalized effect" andthe "bullwhip effect", scholars begin to pay close attention to the reverse supply chain coordinationproblems between enterprises, and the contract plays an important role in reverse supply chainsystem’s coordination for an enterprise to implement the reverse supply chain.Most of the existing research at home and abroad, especially the domestic research is focusedon the two-echelon reverse supply chain contract like manufacturer-retailer contract ormanufacturer-third-party recycler contract, and most of these studies analysis reverse supply chaincontract coordination problems under the condition of determined demand. And in thethree-echelon reverse supply chain, distributors are active participants in the chain. Under thedecentralized case, they can reduce the retailer’s transportation cost and increase profits of reversesupply chain. And in the contract coordination case they share profits of remanufacturing products.But most of these studies have not taken the distributors into account.First of all, this paper introduces the two-echelon reverse supply chain revenue sharingcontract basic mode between a manufacturer and a retailer under the condition of remanufacturingproducts facing determined market demand. And on this basis, it studies the three-echelon reversesupply’s coordination problems which includes a manufacturer, a distributor and a retailer under thecondition of the remanufacturing products facing determined market demand. For reverse supplychain in centralized decision-making case and decentralized decision-making case，decision modelis constructed and analyzed respectively, and on the basis of this，the paper puts forward therevenue sharing contract so as to realize the coordination of three-echelon reverse supply chainsystem.Secondly, the paper takes the condition that remanufacturing products facing marketuncertainty into consideration. Then it introduces the two-echelon reverse supply chain revenuesharing contract basic mode between a manufacturer and a retailer under the condition ofremanufacturing products facing random market demand. And on this basis, it studies thethree-echelon reverse supply’s coordination problems which includes a manufacturer, a distributor and a retailer under the condition of the remanufacturing products facing random market demand..For reverse supply chain in centralized decision-making case and decentralized decision-makingcase，decision model is constructed and analyzed respectively, and the optimal decision undercentralized decision-making and decentralized decision-making are compared. And according to theresults of comparing，the paper build an effective contract coordination mechanism to realize thecoordination of reverse supply chain system.Finally, concrete numerical examples are put forward to verify the effectiveness of the contractabove under the condition of determined demand and random demand. And through the concretenumerical analysis compared with the two-echelon reverse supply chain contract, it conclude thatdistributor plays an important role within the three-echelon reverse supply chain contract. Theresearch can provide decision supports for enterprises which seek to improve profits in the processof recycling and remanufacturing.