Journal of Northeastern University ›› 2007, Vol. 28 ›› Issue (6): 887-890.DOI: -

• OriginalPaper • Previous Articles     Next Articles

Analysis of model of business cooperation and profit distribution based on windfall profit product under closed-loop supply chain

Zhong, Lei-Gang (1); Qu, Wen-Bo (1); Liu, Xiao-Qin (1); Zhang, Cui-Hua (1)   

  1. (1) School of Business Administration, Northeastern University, Shenyang 110004, China
  • Received:2013-06-24 Revised:2013-06-24 Online:2007-06-15 Published:2013-06-24
  • Contact: Zhong, L.-G.
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Abstract: The profitability of each and every business in a supply chain dealing in windfall profit goods relates closely consumer demand, and the service for goods rejection thus becomes one of the main competitive strategies of a business. Profit distribution is not only the basis of the cooperation between businesses in a supply chain, but an incentive. So, aiming at maximizing the gross profit and profit distribution, the cooperative relation between suppliers and retailers in a closed-loop supply chain in random demand and profit sharing among them are modelled. Three main characters of the model considering windfall profit product were derived. A conclusion is drawn that it is reasonable to a certain extent if a business as a node in the supply chain shares the gross profit with others in accordance to its contribution rate to the whole supply chain.

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