Research on the Contract in Jointly Managed Inventory

Abstract

This paper studies three patterns of JMI (Jointly Managed Inventory), and builds contract relevant and solves the corresponding optimal cost-sharing coefficient, and achieves the revenue optimization of each party of supply chain and whole supply chain. The result of the study suggests that when other variables are constant, under the pattern of jointly managed inventory in supplier, the optimal sharing coefficient of cost increases with the wholesale price increasing and decreases with the variable of short cost of inventory minus transport cost increasing; under the pattern of jointly managed inventory in retailer, the optimal sharing coefficient of cost decreases with the wholesale price increasing and increases with the variable the variable of short cost of inventory minus transport cost increasing; under the pattern of jointly managed inventory in the third party, the optimal sharing coefficient of cost of third party increases with the expense of inventory management that third party charge the supplier per unit product increasing and the expense of inventory management that third party charge the retailer per unit product increasing. which has a positive meaning to enriching and developing the theory of JMI and guiding the practice of JMI.