Quantity Flexibility Contract with Effort Cost Sharing in Perishable Product's Supply Chain

Abstract

A supply chain consisting of a manufacturer and a retailer was considered in the paper, on the premise of retailer's effort being relative with demand and false failure return, the mathematical models of quantity flexibility contract with sales effort effects were established, Since a retailer needs to spend corresponding cost when he makes effort, the traditional quantity flexibility contract is proven not to coordinate the supply chain any more. But by adding the effort cost sharing to the traditional quantity flexibility contract, the coordination of supply chain can be carried out, and the optimal procedure is given, and the optimal supply chain contracts parameters are determined.