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《Systems Engineering》 2004-08
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A Study on Buy Back Contract of Perishable Goods under Retail Inventory Competition

ZHAO Quan-wu~1,XIONG Yu~2,LIN Ya~3,XIONG Zhong-kai~1 (1. College of Economy and Business Administration,Chongqing University,Chongqing 400044,China; 2. School of Computing and technology,Nottingham Trent University,Nottingham NG13FB,Britain; 3. Graduate Military Unit,Chongqing Communication Institute,Chongqing 400035,China)  
In a two-echelon supply chain of perishable goods consisted by a supplier and multi-retailers, the market price is exogenous, the retailers are symmetry and they sell the same perishable product, the market demand is stochastic. There (exist) inventory competition among them. When the supplier adopts buy back contract, the retail inventory game exists an (unique) pure-strategic Nash equilibrium. Buy back contract can coordinate the above supply chain and divide the whole (expected) profit between supplier and retailers arbitrarily. At last we discuss some reasons why Buy back contract is popular in practice.
【Fund】: 国家青年社科基金资助项目(02CJY027)
【CateGory Index】: F224
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