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Study on the coordination contract in supply chain under trade credit based on risk compensation
Institution:1. Bussiness School, Sichuan University, Chengdu, 610064, P.R. China;2. College of Management Science, Chengdu University of Technology, Chengdu, 610059, P.R. China;1. School of information engineering, Guangdong Mechanical & Electrical College, Guangzhou 510550, PR China;2. Department of Information Science and Technology, Guangdong University of Foreign Studies South China Business College, Guangzhou 510545, PR China;1. School of Science, East China Jiaotong University, Nanchang , Jiangxi, Postal code 330013, PR China;2. School of Mathematics, South China Normal University, Guangzhou, Guangdong, Postal code 510631, PR China;3. School of Mathematics and Computer Science, Guizhou Normal University, Guiyang, Guizhou, Postal code 550001, PR China;1. School of Computer Science and Engineer, Southeast University, Nanjing 210096, China;2. School of Continuing Education, Southeast University, Nanjing 210096, China;3. School of Computer Engineering, Jiangsu University of Technology, Changzhou, Jiangsu 213001, China;4. School of Information Science and Technology, Yunnan Normal University, Kunming 650500, China;1. Jiangsu Provincial Key Lab of Image Processing and Image Communication, Nanjing University of Posts and Telecommunications, Nanjing 210003, China;2. State Key Laboratory for Novel Software Technology, Nanjing University, Nanjing 210093, China
Abstract:Trade credit changes the inventory risk between supplier and retailer. This leads to failure in the coordination of the supply chain. Considering that the supplier bears the retailer’s inventory risk under the credit condition, in this paper, the contract is constructed by combining the risk compensation and quantity discount contract to re-coordinate the supply chain and analyze the contract. The results show that the contract can achieve voluntary supply chain coordination; and when the seller’s funds is within a certain range, the coordinate contract can perform in the form of the wholesale price contract, and the wholesale price is influenced by its own funds and product value. In the end, a numerical example is given to verify this conclusion.
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