Research on Coordination of Durable-Equipment Rental Supply Chain Based on Revenue Sharing Contract

Abstract

This paper studies the durable-equipment leasing supply chain, which considering that the manufacturer is the leader of Stackelberg game and the leaseholder is the follower. The results show that revenue sharing contract can realize the coordination of the supply chain, the ordering quantity of the durable-equipment is increased and the whole profit of the supply chain can be added. But compared with buy back contracts, revenue sharing contract brings more risk to the manufacturer and cannot promote trading in the second market.