Mobile service supply chain coordination with revenue sharing contracts

The mobile service supply chain has unique characteristics that differentiate it from the traditional supply chain. For example, there is no tangible inventory and the sales revenue is directly collected from the customers by the Mobile Network Operator ‘MNO’. This research studies the coordination mechanism of the mobile service supply chain and establishes and analyses a model of revenue-sharing contract. We show that, under certain conditions, the revenue-sharing contract can maximise the expected profit and coordinate the mobile service supply chain. We also illustrate the results using a numerical example.