Coordination of Buy Back Contract with E-market as a Secondary Market

Based on the supply chain with electronic market model, if the distributor can sell excess inventories in electronic market after normal sales season, the traditional contract can not achieve coordination of supply chain. Through a comparative analysis, we proved that the improved buy back contract can coordinate the supply chain with electronic market and achieve Pareto improvement for members of the supply chain. We also have a simulation example to examine our main conclusions.