TY - JOUR ID - 141967 TI - A supply chain coordination model using buyback contract considering effort dependent demand JO - Journal of Industrial and Systems Engineering JA - JISE LA - en SN - 1735-8272 AU - Fakhrzad, Mohammad Bagher AU - Dehghan, Abolfazl AU - Jafari-Nodoushan, Abbasali AD - Department of industrial Engineering, Faculty of Engineering, Yazd University, Yazd, Iran AD - Department of Industrial Engineering, Faculty of Engineering, Meybod University, Meybod, Iran Y1 - 2022 PY - 2022 VL - 14 IS - 1 SP - 263 EP - 278 KW - Buyback contract KW - supply chain coordination KW - sales effort KW - quality improvement effort DO - N2 - This paper deals with the coordination of a two-stage supply chain, including a supplier and a retailer. The final demand is sensitive to the sales promotion and the quality improvement done by the retailer and the supplier, respectively. In the standard newsvendor setting, a buyback contract integrates the decentralized system where both members try to optimize their own profit. We showed that a buyback contract could not thoroughly coordinate the supply chain even though it enhances the whole supply chain profit. Therefore, in this research, we extended a new contract based on a buyback contract with which both members share the costs of efforts. The results showed that this contract can coordinate the channel and provide a win-win condition for supply chain components. The numerical example is used to indicate the results and obtain more insights. The optimal sales and quality efforts and the optimal order level are also determined, resulting in the optimal supply chain profit. Sensitivity analyses are performed in order to investigate the effects of different parameters on decision variables and profit. The results showed that the supply chain performance decreases by incrementing the cost coefficients of sales effort and quality efforts. UR - https://www.jise.ir/article_141967.html L1 - https://www.jise.ir/article_141967_c3eeedb52a06a20e0f536aa85d7138f6.pdf ER -