Advances in Operations Research
Volume 2012 (2012), Article ID 375128, 14 pages
Research Article

Supply Chain Coordination under Stock- and Price-Dependent Selling Rates under Declining Market

1Department of Mathematics, Institute of Engineering and Management, Salt Lake Electronic Complex, Kolkata, West Bengal-700091, India
2Department of Mathematics, Institute of Technology and Marine Engineering, Diamond Harbur Road, Amira, West Bengal-743368, India
3Department of Mathematics, University of Kalyani, Kalyani, West Bengal-741235, India

Received 25 September 2010; Revised 11 February 2011; Accepted 8 June 2011

Academic Editor: Ching-Jong Liao

Copyright © 2012 Subrata Saha et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


We explore coordination issues of a two-echelon supply chain, consisting of a distributor and a retailer. The effect of revenue-sharing contract mechanism is examined under stock-time-price-sensitive demand rate. First, we investigate relationships between distributor and retailer under noncooperative distributor-Stackelberg games. Then we establish analytically that revenue sharing contact is able to coordinate the system and leads to the win-win outcomes. Finally, numerical examples are presented to compare results between the different models.