Research on revenue sharing coordination contract in automobile closed-loop supply chain

Abstract

Based on the closed-loop supply chain system of an automobile manufacturer and a retailer, the differential pricing model and revenue sharing contract model of the participating enterprises in vehicle closed-loop supply chain are analyzed. The double marginalization is found in the decentralized decision mode through the comparative analysis of differential pricing in centralized and decentralized decision modes. Moreover, revenue sharing contract is used to coordinate the differential pricing decisions in closed-loop supply chain. The validity of the model is proven with numerical example.