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Complexity of Ordering Dynamics under Pure Revenue-Sharing Contracts

Authors: Debing Ni; Kevin W. Li; Xiaowo Tang;

Complexity of Ordering Dynamics under Pure Revenue-Sharing Contracts

Abstract

This paper examines the ordering dynamics in a supply chain coordinated by pure revenue-sharing contracts by relaxing the complete rationality assumption in the literature. Analytical results demonstrate that the retailer's ordering dynamics exhibits chaos with a positive (Lebesgue) measure in the long term no matter what percentage is adopted in a pure revenue-sharing contract as long as certain conditions are met. This unpredictability of ordering dynamics serves as a warning signal to a contract designer that s/he should pay attention to the profiles of external market and internal behavioral parameters that may lead to chaotic ordering dynamics, and then certain incentive terms may be installed in the contract to motivate the retailer to choose appropriate adjustment speed parameter values such that chaos is likely to be avoided and the supply chain can be coordinated.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
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