Studying the impact of quantity discount contract and cost-sharing contract on a two-echelon green supply chain profit

Document Type: Research Paper


1 University of Tehran

2 Industrial Engineering, Islamic Azad University, South Tehran Branch


The members of a chain always try to find new ways in order to raise their profit. Hence we intend to study two different scenarios in a single item two-echelon green supply chain including two manufacturers and one retailer to study the effects of two effective contracts on members’ profit. Two scenarios are discussed and in first one, first manufacturer proposes quantity discount contract to retailer and in second scenario retailer proposes cost sharing contract to second manufacturer. Then a numerical example and sensitivity analysis is implemented to review the mathematical relations in detail and assess the effect of some parameters on our decision variables and profits. The results show that cost sharing contract is more beneficial for retailer and second manufacturer than quantity discount contract.


Main Subjects

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