Coordination Contracts for Competitive Two Echelon Supply Chain With Price- and-Promotional Effort Dependent Demand

With the deepening of globalization,improve the market share is becoming more and more important,to many enterprises promotional effort is a good choice.Based on price-and-promotional effort dependent demand,we developed a model consists of a dominant manufacture and two retailers,and compared the optimal strategies under the centralized and decentralized scenarios. To coordinate the supply chain and improve the profits of the members of the supply chain, two coordination contracts are proposed, we find that these contracts improved profits of both sides. Finally we validated the effectiveness of these contracts through numerical examples.