Consignment Contracts with Revenue Sharing for a Capacitated Retailer and Multiple Manufacturers

• Main Authors: LIM, Yun Fong, WANG, Yunzeng, WU, Yue
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: incentives and contracting; supply chain management; capacity planning and investment; game theory; retailing; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3296; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4295/viewcontent/yflim_MSOM2015_afv.pdf
• Institution: Singapore Management University

We consider a retailer with limited storage capacity selling n independent products. Each product is produced by a distinct manufacturer, who is offered a consignment contract with revenue sharing by the retailer. The retailer first sets a common revenue share for all products, and each manufacturer...