Research of after-sale service system based on supply chain contract

Abstract

With the advancement of economic globalization, not only the product determines success in enterprise competition, but also by its quality of the after-sale service. After-sale service is a series of activities including introduction, delivery, maintenance, repair and technical training (support) given by the manufacturer or supplier during and after a warranty period. The main cost is called fixed cost which remains (more or less) unchanged irrespective of the output level or sales revenue. The cost plus contract is used traditionally. Under a cost-plus contract, a contractor is reimbursed for the cost incurred, and is paid an agreed upon percentage of such costs as contractor’s profit. This contract is widely used for a long time for the preconcerted product performance.