2023
DOI: 10.1108/jm2-11-2022-0260
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Perspectives of two competing manufacturers: customer rebate vs. contract mechanism

Abstract: Purpose This paper aims to analyze the potentials of dynamic, commitment and revenue-sharing contracts; that a nonrebate offering manufacturer can use to safeguard his profit while his competitor offers customer rebates in a supply chain consisting of two manufacturers and a common retailer. Design/methodology/approach We consider a two-period supply chain model to explore optimal decisions under eight possible scenarios based on the contract and rebate offering decisions. Because the manufacturers are selli… Show more

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