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Research Article

Coordination and Optimization of Supply Chain under a New Buy-back Contract

Songtao Zhang, Min Zhang and Juan Ni
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The problem of the coordination and optimization of supply chain is studied under a new buy-back contract. Firstly a supply chain system which consists of one manufacturer and two markets is constructed. Then a new buy-back contract is proposed to make the profit of the manufacturer maximize by the strategies of adding price and discriminating price. By compared to the normal price strategy, the maximum profit can be obtained for the manufacturer when the two price strategies are adopted for the two markets at the same time. Finally, a numerical example illustrates that the proposed new buy-back contract can coordinate and optimize the supply chain system.

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  How to cite this article:

Songtao Zhang, Min Zhang and Juan Ni, 2013. Coordination and Optimization of Supply Chain under a New Buy-back Contract. Journal of Applied Sciences, 13: 3543-3547.

DOI: 10.3923/jas.2013.3543.3547


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