Reverse Supply Agreement

Xu Y, Xie H (2016) Consumer environmental awareness and coordination in the Llosed-Loop supply chain. Open J Bus Manag 4 (3):427-438 Hariga M, Glock CH, Kim T (2016) Integrated Product and Container Inventory Model for a supply chain of individual buyers with reusable and leased transportation products. J Optim Ind Eng 54 (7):1964-1979 With the extension of the supply chain due to globalization and offshore production, many companies have seen their capital availability decrease. In addition, pressure from companies to improve cash flows has put increased pressure on their foreign suppliers. In particular, suppliers are under pressure in the form of extended payment conditions or increased working capital imposed by large consumers. The general trend towards opening subscription accounts continued to contribute to the problem. In this article, we have built a stackelberg gaming model within a CLSC system in which the manufacturer plays the role of market leader and the distributor is a follower. In order to integrate the distributor into this CLSC system, in order to allow the manufacturer to benefit more from the collection activities, the manufacturer must provide the distributor with satisfactory contracts. Based on previous literature, we have chosen two types of contracts: reverse income-sharing contracts and two-part collective agreements as a bargaining mechanism. Sluis S, De Giovanni P (2016) The selection of contracts in supply chains: an empirical analysis. J Oper Manag 41:1-11 Ahmadi A, Mohabbatdar S, Sajadieh MS (2016) Best manufacturers reseller policies in a supply chain with faulty demand based on products and prices. J Optim Ind Eng 19:37-46 The concept of reverse factoring itself is not so original.

It was the automakers who started it. In the 1980s, Fiat, in particular, used this type of financing procedure for its suppliers to obtain a better margin. The principle then extended to retail because it represents interest in a sector where late payments are at the centre of any negotiation. Li X, Wang Q (2007) Supply Chain Coordination Mechanisms. Eur J Oper Res 179 (1):1-16 Zheng B, Yang C, Yang J, Zhang M (2017) Dual-Channel Closed Loop Supply Chains: Forward Channel Competition, Power Structures and Coordination. Int J Prod Res 55 (12):3510-3527 The importance of reprocessing has been recognized in research and practice. The integrated system, which combines the back and forth activities of supply chains, is called the Closed Loop Supply Chain System (CLSC). Through coordination in the clsc system, players will receive economic improvements. This paper examines the different coordination services for two types of contracts, the two-part rate (TTC) and the Reverse Income Sharing Contract (RRSC), in a closed circuit. Through mathematical analyses based on the Stackelberg Game Theory, we find it easy for the manufacturer to improve more profits and distributor collection effects by adjusting the price ratio of the transfer collection by RRSC, and we also give the function of calculating the best price ratio of the transfer collection , which can be a valuable reference for the decision maker in practice. In addition, our results suggest that, although the benefits of the coordinated CLSC system are consistently higher than the adversarial scenario, the CHRR is more favourable to the manufacturer than to the dealer, as the results show that the manufacturer will share more benefits of the system through RRSC.

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