Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/6276
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Title: Sales rebate contracts in fashion supply chains
Authors: Chiu, CH
Choi, TM 
Yeung, HT
Zhao, Y
Issue Date: 2012
Source: Mathematical problems in engineering, v. 2012, 908408, p. 1-19
Abstract: We explore in this paper the performance of sales rebate contracts in fashion supply chains. We conduct both analytical and numerical analyses via a mean-variance framework with reference to real empirical data. To be specific, we evaluate the expected profits and variance of profits (risk) of the fashion supply chains, fashion retailers, and manufacturers under (1) the currently implemented sales rebate practices, (2) the case without sales rebate, and (3) the theoretical coordination situation (if target sales rebate is adopted). In addition, we analyze how sales effort affects the performances of the supply chain and its agents. Our analysis indicates that the rebate contracts may hurt the retailer and the manufacturer of a fashion supply chain when it is inappropriately set. Moreover, a properly designed sales rebate contract not only can coordinate the supply chain (with retail sales effort) but can also improve expected profits and lower the levels of risk for both the manufacturer and the retailer.
Publisher: Hindawi Publishing Corporation
Journal: Mathematical problems in engineering 
ISSN: 1024-123X
EISSN: 1563-5147
DOI: 10.1155/2012/908408
Rights: Copyright © 2012 Chun-Hung Chiu 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.
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