A Optimization Model of Incentive Mechanism between Manufacturer and Dealer in Supply Chain

Abstract

According to the idea of existing quantity flexibility contract , aiming at the particularity of buyers' market's timeliness product, through introducing buyback contract method, a optimization model of supply chain flexibility contract is put forward which can incent dealer and make up the deficiency of single flexibility contract. An example is given to calculate the contented factors of wholesale price and rebate proportion to take the incentive mechanism effect, and to illustrate that manufacturer and dealer share the risk in the supply chain.