Buyback contracts with pricedependent demands Effects of demand uncertainty.pdf

European Journal of Operational Research 239 (2014) 663–673 Contents lists available at ScienceDirect European Journal of Operational Research journal homepage: www.else /locate/ejor Production, Manufacturing and Logistics Buyback contracts with price-dependent demands: Effects of demand uncertainty Yingxue Zhao a, Tsan-Ming Choi b,⇑, T.C.E. Cheng c, Suresh P. Sethi d, Shouyang Wang e a School of International Trade and Economics, University of International Business and Economics, Beijing 100029, PR China b Institute of Textiles and Clothing, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong c Department of Logistics and Maritime Studies, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong d School of Management, University of Texas at Dallas, Richardson, TX 75083, USA e Institute of Systems Science, Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190, PR China a r t i c l e i n f o a b s t r a c t Article history: We explore buyback contracts in a supplier–retailer supply chain where the retailer faces a price-depen- Received 13 October 2012 dent downward-sloping demand curve subject to uncertainty. Differentiated from the existing literature, Accepted 9 June 2014 this work focuses on analytically examining how the uncertainty level embedded in market demand Available online 19 June 2014 affects the applicability of buyback contracts in supply chain management. To this end, we seek to char- acterize the buyback m