TY - JOUR ID - 3622 TI - Supply Chain Channel Coordination under Sales Rebate Return Policy Contract Using Simulation Optimization JO - Scientia Iranica JA - SCI LA - en SN - 1026-3098 AU - Darayi, Mohamad AU - Eskandari, Hamidreza AU - Geiger, Christopher D. AD - School of Industrial Engineering Tarbiat Modares University P.O. Box 14117‎ Tehran, Iran AD - Department of Industrial Engineering and Management Systems University of Central Florida Orlando, FL 32816, USA Y1 - 2014 PY - 2014 VL - 21 IS - 6 SP - 2295 EP - 2306 KW - supply chain coordination KW - Return Policy with Sales Rebate and Penalty Contract KW - Simulation KW - Price- and Effort-Dependent Demand SRP: sales rebate and penalty KW - RSRP: return policy with sales rebate and penalty KW - LRSRP: limited return policy with sales rebate and penalty DO - N2 - This paper proposes a Stackelberg game-based approach for channel coordination for a supply chain consisting of one supplier and two competing retailers facing stochastic demand that is sensitive to both sales effort and retail price. In the proposed approach, the supplier, as the leader, defines the contract format and parameters, and the retailers determine the order quantity, retail price and sales effort. The literature primarily focuses on the design of the contract parameters to ensure channel coordination, whereas much less attention is given to the analysis of conditions supporting the contract implementation. This study focuses on the implementation of the return policy with sales rebate and penalty (RSRP) contract as a coordination mechanism. The negotiation and trading procedure among supply chain members is modeled using a simulation optimization-based decision support tool. The possibility that the retailers impose their own preferences that disturb the channel coordination after signing the RSRP contract is analyzed and a new limited return policy with sales rebate and penalty (LRSRP) contract, which helps the supplier guarantee channel coordination and control retailer decisions, is proposed. UR - https://scientiairanica.sharif.edu/article_3622.html L1 - https://scientiairanica.sharif.edu/article_3622_011e8bb2b010cc6c5ef3641c009301f3.pdf ER -