A new type of revenue sharing (RS) contract mechanism for multi-echelon supply chains between the most downstream entity and all upstream entities is proposed. The new RS contract is analyzed in the linear supply chain setting facing stochastic demand. Advantages over mechanisms with RS contracts between all pairs of adjacent entities are discussed and demonstrated.
['Bo van der Rhee', 'Jack A. A. Van Der Veen', 'V. Venugopal', 'V.R. Nalla']
A new revenue sharing mechanism for coordinating multi-echelon supply chains