The Impact of Different Cost-sharing Contracts on Product Pricing,Quality and After-sales Service
It focuses on two common supply chain cost sharing contracts in real life in this paper:one is that the manufacturer bears part of the after-sales service cost for the retailer,the other is that the manufacturer bears parts of the after-sales service cost for the retailer,and the retailer bears parts of the quality cost for the manufacturer.The impact of using different cost sharing contracts on product pricing,quality level,after-sales service level and the profit of supply chain members is analyzed.It is found that(1)When the after-sales cost sharing ratio and the quality cost sharing ratio are lower than a certain level,the product quality level and after-sales service level under the two cost-sharing contracts can be improved,but the quality cost and after-sales cost are shared by each other The product quality level and after-sales service level under the contract will be higher.(2)The manufacturer's profit under the contract for the mutual sharing of quality cost and after-sales cost is always higher than the profit under a single after-sales cost-sharing contract,but the manufacturer can only share a small proportion of after-sales service costs and consumers have a greater impact on after-sales service costs.When insensitive and the quality cost coefficient is large,compared with not using a cost sharing contract,the use of a single after-sales cost sharing contract can increase profits.This also explains why in emerging industries,manufacturers tend to use quality and after-sales cost sharing contracts,because consumers in emerg-ing industries are often more sensitive to after-sales service costs,and use quality cost and after-sales cost shar-ing contracts and use single Compared with the after-sales cost sharing contract,the after-sales service level of the product can be improved to a higher level,thereby increasing the profit of the manufacturer.(3)Retailers may not necessarily benefit from a single after-sales cost-sharing contract.Only when the quality cost coefficient is small,compared with not using a cost-sharing contract,the retailer's profit under a single after-sales cost-sharing contract will be higher.Compared with a single after-sales service cost-sharing contract,when both the quality cost coefficient and the after-sales cost coefficient are large,the retailer's profit under the contract for mutual sharing of quality cost and after-sales cost will be lower.
supply chaincost sharing contractproduct pricingafter-sales service levelquality level
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