Coordination of a Three-echelon Pharma-Supply Chain with Corporate Social Responsibility Under Spanning and Pair-wise Revenue Sharing Contracts

摘要

Expanding social dimensions of different businesses in the last decade's results in reviewing global issues in particular Corporate Social Responsibility (CSR). In this view, the achievement of desired responsibility levels is intertwined with classical decisions such as ordering and pricing. In addition, decision making processes in supply chains provides a range of theories and implications about conducting coordination mechanisms through the chain interactions. In this paper, a manufacturer, distributor and retailer are considered to form a three-echelon pharmaceutical supply chain. It is possible for the manufacturer to invest in responsibility level which improves market demand. Moreover, the demand depends on different prices which the retailer sets for end customers. Thus, the effect of pricing and responsibility levels on the profitability and coordination of the chain is analyses under different revenue sharing contracts. The coordination analysis shows that spanning revenue sharing can coordinate the chain partners in the absence of goodwill penalty costs where the holding costs should be assigned merely to one of the downstream partners. On the other hand the pair-wise revenue sharing cannot provide coordination condition and its level of efficiency is dependent on the Stackelberg gaming of the downstream partners.