Supply Chain Contracts in Fashion Department Stores: Coordination and Risk Analysis

Table 2

The expression of the EP and SP for all parties under the PS and MD contracts with sales effort consideration.

	Expected profit
Retailer	PS	EPR_CP(𝑄,𝑒)=𝑒𝜙[(𝑟−𝑐)𝑄−(𝑟−𝑣)𝑛(𝑄)]−𝜆𝛽𝑒^2.
	MD	EPR_NB(𝑄,𝑒)=𝑒[(𝑟−𝑤)𝑄−(𝑟−𝑚−𝑣)𝑛(𝑄)]−𝜆𝛽𝑒^2.
Supplier	PS	EPS_CP(𝑄,𝑒)=(1−𝜙)𝑒[(𝑟−𝑐)𝑞−(𝑟−𝑣)𝑛(𝑞)]−(1−𝜆)𝛽𝑒^2.
	MD	EPS_NB(𝑄,𝑒)=𝑒[(𝑤−𝑐)𝑄−𝑚𝑛(𝑄)]−(1−𝜆)𝛽𝑒^2.
Supply chain	PS	EPSC_CP(𝑄,𝑒)=𝑒[(𝑟−𝑐)𝑄−(𝑟−𝑣)𝑛(𝑄)]−𝛽𝑒^2.
	MD	EPSC_NB(𝑄,𝑒)=𝑒[(𝑟−𝑐)𝑄−(𝑟−𝑣)𝑛(𝑄)]−𝛽𝑒^2.

Notes. 𝑛(𝑄)=∫^𝑄₀𝐹(𝑥)𝑑𝑥.