Profit optimization with coexisting buy-back and wholesale-price contracts

This paper gives a model for profit optimization by a distributor when buy-back and wholesale-price contracts coexist. It is applicable to industries such as fashion, games, and publishing industries, where many new products are shipped to the market every day and with very short lives. We provide a method to determine the optimal sizes of push-type shipments based on retailer behavior and the uncertainties of consumer demand forecasts.