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We show that the all-unit quantity discount contract fails to coordinate.
Also a coordinating quantity discount contract where the discount on the price depends on the total installed capacity is designed.
We also examined other contracts, including the target rebate contract and the wholesale price discount contract, both with price match.
When the demand is realized, the supplier must sell to the buyer at a discount contract price up to a contract reservation quantity, and the buyer will pay a contract penalty for each unit he reserved but did not order.
Our analysis suggests that both upstream and downstream sides of the supply chain may prefer the same "quantity discount" contract, which would eliminate the conflicts of interest that otherwise typify contracting situations.
Similar(55)
We further propose a mechanism that uses modified quantity discount contracts to coordinate the supply chain.
We then examine whether revenue-sharing, buyback, and all-unit quantity discount contracts can coordinate our supply chain.
Finally, we present a numerical example to illustrate the findings of the models and provide suggestions for applying quantity discount contracts.
Ms. Maynard said HeavenlyDoor.com planned to negotiate discount contracts for its funeral-director members, and would hope to make its money in transaction fees.
But the government maintained last night that gas cuts were now only affecting 27 factories, and that all these had signed up to discount contracts allowing suppliers to interrupt their supplies in periods of high demand.
Quantity discount contracts are more common in practice among aforementioned contracts.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com