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| DownsideRisk Based ClosedLoop Supply Chain Coordinated by Two ThirdParty Collecting Logistics |
| SHI Chengdong,ZHOU Guanglu,YAN Xiuxia,ZHANG Zhengmin,MA Yushen |
| 1. Shandong University of Technology, Zibo , Shandong, China;
2. Curtin University, Perth, Australia |
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Abstract In the context of a riskneutral supplier, a downsiderisk retailer and two thirdparty logistics suppliers, a downsiderisk closed loop supply chain model is established
by using game theory, and the impact of revenueandexpense sharing contract is analyzed in the channel, which shows that the contract may not coordinate such a channel on the theory of
downsiderisk control. Also, a risksharing contract which is composed of revenueandexpense contract and return policy is designed that offers the desired downside protection to the
retailer, provides more profits to the agents, and accomplishes channel coordination. Moreover, a case is given for justifying the effectiveness and feasibility of the risksharing
contract.
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Received: 08 October 2013
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2014, Vol. 11 
