Research on the Retailer-leading Supply Chain Markdown Money Contract

Kunying WANG1, Lei ZENG2

1School of Management, Chongqing Jiaotong University, Chongqing, 400074, CHINA

2School of Information Science and Enginering, Chongqing Jiaotong University, Chongqing, 400074, CHINA

Abstract: In the retailer-leading supply chain, wholesale price contract model and markdown money contract model were built, and decision-making behaviors of the members of supply chain were compared under the above two contracts. Research results showed that both wholesale price contract and markdown money contract could not coordinate the supply chain, and efficiency of wholesale price contract was superior to markdown money contract in the retailer-leading supply chain, retailer would choose wholesale price contract. Finally, theoretical conclusion was verified by numerical simulation.

Keywords: Wholesale price contract; Markdown money contract; Supply chain