Sales Rebate Contracts in Fashion Supply Chains

Table 1

Summary of current sales rebate practices*.

	Companies
	MRS	MH	RX	SS	LS
Business types	Sportswear	Children wear	Luxury watches	Cosmetic	Jeanswear
Rebate forms	Target	Target	Linear	Target	Linear
Rebate rates; (% of p per unit)	1.5%	3%	15%	10%	2%
𝑇	2% of expected demand	5% of expected demand	0%	10% of expected demand	0%
𝑐	120	15	9000	50	66
𝑤	218	35	16000	100	195
𝑠	58	7.25	4350	24.2	32
𝑆	499	80	37600	190	390

*Notice that RX and LS are implementing linear rebate contracts with a zero target level. MRS, MH, and SS are implementing target sales rebate.