Sales Rebate Contracts in Fashion Supply Chains

Table 2

Expected profits under SCC, current practices, and no rebate case for the no-sales-effort model.

	Companies
	MRS	MH	RX	SS	LS
SCC
𝐸[R’s profit]	232350.15	36930.36	17970881.83	70889.52	154416.22
𝐸[M’s profit]	117118.79	24059.38	8410536.48	57216.39	151394.49
𝐸[SC’s profit]	349468.94	60989.74	26381418.30	128105.91	305810.71
Order quantity	1323.30	1373.56	1324.30	1303.59	1392.78
u	697.06	187.74	50053.76	320.97	1354.69
u % (of p)	139.69%	234.68%	133.12%	168.93%	347.36%
T	1066.53	1049.81	1068.86	1052.17	1036.62
No rebate
𝐸[R’s profit]	231372.28	36680.45	17903826.88	70266.49	152409.02
𝐸[M’s profit]	108318.02	21810.15	7807041.98	51609.09	133329.75
𝐸[SC’s profit]	339690.30	58490.60	25710868.86	121875.58	285738.77
Order quantity	1105.29	1090.51	1115.29	1032.18	1033.56
Current practices
𝐸[R’s profit]	231645.43	36724.47	23186337.56	69889.61	159413.89
𝐸[M’s profit]	108514.33	21954.56	2785164.79	53639.01	127261.25
𝐸[SC’s profit]	340159.76	58679.03	25971502.34	123528.62	286675.13
Order quantity	1110.14	1100.14	1157.70	1068.05	1040.92
u	7.49	2.4	5640	19	7.8
T	1020	1050	0	1100	0