Title: Analysis of results obtained on return contracts with warranty

Authors: Shirsendu Nandi

Addresses: Indian Institute of Management Rohtak, Rohtak, Haryana-124001, India

Abstract: Literature on supply chain contract has extensively dealt with the coordination models with respect to different supply chain contracts and different properties and results obtained in the said context. The current study obtains results for coordination involving different contract parameters, exogenous variables when a warranty clause is also considered along with two return policy contracts viz: buyback contract and quantity flexibility contract. It also investigates whether the key properties hold good in this extended model where warranty related variables are also considered. The study provides a guideline to the channel coordinator to optimally design the contract parameters and warranty length to achieve channel coordination and optimal supply chain profit. The model is built considering a two stage supply chain and is applicable to different demand distributions. The theoretical results discussed in the present study can be suitably used in designing contracts and warranty parameters in different supply chains.

Keywords: buyback; quantity flexibility; supply chain coordination; warranty; supply chain contract.

DOI: 10.1504/IJOR.2018.095622

International Journal of Operational Research, 2018 Vol.33 No.3, pp.277 - 296

Received: 14 Jul 2015
Accepted: 07 Nov 2015
Published online: 16 Oct 2018 *

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