The analyses in this paper are the first that address the problem of coordination through contracts in supply chains with binomially distributed production yield.
Given the extensive utilization of contracts in supply chains, the issues concerning contract analysis and design are extremely important for supply chain management (SCM), and substantial research has been developed to address those issues over the past years.
In this paper, we investigate the potential coordinating power of the revenue sharing contract in a supply chain with one manufacturer and one supplier that collaborate to improve the design quality of a particular finished product.
Our paper contributes to the literature by developing intuitive characterizations for the option contract models and generating some new insights with respect to the use of supply option contracts in the supply chain in the presence of a stochastic spot market and demand information updating.
You will see forwards, for physical delivery, tradeable commodity-style physical-settlement futures contracts to lock in supply, and cash-settlement contracts to lock in a price.
Heydari et al. (2017) discussed a two-level day in payments contract for supply chain coordination in the case of credit-dependent demand.
Known as the Gansler Commission, the panel sharply criticized the Army for failing to train enough experienced contracting officers, deploy them quickly and ensure that they properly manage billions of dollars in contracts to supply troops in Afghanistan and Iraq.
"There are multiple contracts in these supply chains, and the contracts are very tight," he said.
The existing buyback contracts in the supply chain coordination literature do not guarantee the satisfaction of individual rationality constraint.
Motivated by the industrial practices, this paper develops a two-stage model to explore the supply option contract in a two-echelon supply chain, taking into account a stochastic spot market and demand information updating of general correlation.
The Swedish truck and bus maker Volvo said yesterday that a unit had won a contract to supply 825 buses in Canada in a deal expected to be worth about 400 million to 700 million Canadian dollars ($250 million to $438 million).
