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Revenue-and-Expense Sharing Contract on the Coordination of Closed-loop Supply Chain under Stochastic Demand

GUO Ya-jun1,ZHAO Li-qiang1,2,LI Shao-jiang1(1.School of Business Adminstration,Northeastern University,Shenyang 110006,China;2.Department of Management,Shenyang Institute of Aeronautical Engineering,Shenyang 110034,China)  
From the viewpoint of supply chain,the basic request of continuous development is transferring from the single and open circle of "resources-produce-consume-abandon" to the closed and feedback supply chain of "resources-produce-consume-recycle".With the enhancement of the environmental consciousness,the importance of remanufacturing used products into new ones has been widely recognized in both literature and practice.In this paper,we consider a two level closed-loop supply chain which enables the retailer to be engaged in the promotion and collection of used products in addition to distributing new products,and the demand is stochastic.Joint decision profit model is developed to analyze how the node enterprises decide order quantity and collection price based on game theory.At last,we put forward a revenue-expense sharing contract to coordinate the closed-loop supply chain.
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