Coordination contracts for a kind of reverse supply chain based on retailer´s delivery time guarantee

In this paper, we consider a two-echelon reverse supply chain system with one manufacturer, one retailer and a group of consumers, which offers consumers with perishable products, and consumers are allowed to return products to the retailer after purchasing. Joint decision models of delivery time and ordering quantity as well as refund was established separately in decentralized decision mode and centralized decision mode under the random market demand and delivery time. Further, we also analyze the optimal decisions under the two modes. Results show that centralized decisions not only shorten the delivery time and increase the total profit of the supply chain but increase the ordering quantity. Finally, a sales rebate contract is designed for supply chain coordination and the mechanisms are also discussed.