Correspondence: Sameer Kumar, Opus College of Business, University of St. Thomas, Mail No. TMH 343, 1000 LaSalle Avenue, Minneapolis, MN 55403-2005, USA. E-mail: skumar@stthomas.edu

¹is a professor of Decision Sciences and Qwest Chair in Global Communications and Technology Management at Opus College of Business, University of St. Thomas. Major research interests include optimization concepts applied to design and operational management of production and service systems, including health-care systems and applications, in which issues relating to various aspects of global supply chain management, product and process innovation, and capital investment justification decisions are considered.

²is currently a warehouse manager and building owner for New Software Deployment at Best Buy. Previously, he held positions as Finance Supervisor for New Business Initiatives and Project Leader at Best Buy. Haider has a BS in Business from St. Cloud State University, Minnesota, and is currently completing an MBA from the Opus College of Business at the University of St. Thomas.

Received 14 August 2009; Revised 14 August 2009; Published online 14 August 2009.

Abstract

The purpose of this case study is to analyze the effectiveness of three types of supply chain contracts within the pre-recorded music products supply chain. This article will analyze buyback contracts, revenue-sharing contracts and quantity flexibility contracts. The article will explain why managers in the pre-recorded music industry should adopt these supply chain contract approaches to increase revenues. The models described in the case study could be seamlessly utilized by music distributors and major consumer electronic retailers to maximize their revenues and profits within this highly competitive industry.