The supply chain coordination model based on sales return and efforts

Taking a two-stage supply chain model of a single manufacturer and a single retailer as the research object, this paper initially proposes the random demand function of retailers’ effort to establish an integrated supply chain model based on dual factors of retailer effort and selling price. Then it discusses how to optimize the reward and punishment contracts to realize the win-win situation of supply chain members under decentralized decision-making by analyzing the coordination and optimization of supply chain under centralized and decentralized conditions. Finally, the conclusion is verified by numerical simulation experiment, effort and quantity will decrease along with the increase of the distribution coefficient and will increase with the increase of the buy-back price’s coefficient.