A Comparison of Buyback, Rebate and Flexible Contracts in a Seller-Buyer Supply Chain

In the last two decades, supply chain management has been studied in many aspects and professionals were looking forward to improving the sustainability, overall profit, reduce cost and risk simultaneously. Coordination contracts are beneficial to make a better relationship between supply chain members. Many different forms of SC contracts have been applied in recent years. This article evaluates three forms of coordination contracts in a two-level supply chain where seller-buyer's agreement on products exchange makes a flexible relationship that likely supports supply chain profit overall. This paper has collated three forms of the rebate, quantity flexible and buyback contracts based upon uncertain demand using a game theoretic approach to clarify the value of implementing each format despite the formation of industries. The proposed approach has been employed in experimental designs. The investigation illustrates that coordination is beneficial in assuaging supply chain's profit overall. However, the rebate contract has remarkable outcome rather than other contract forms