The quantity flexibility contract and supplier-customer incentives. (English) Zbl 1231.90065

Tsay, Andy A.

Manage. Sci. 45, No. 10, 1339-1358 (1999).

Summary: Consider a supply chain consisting of two independent agents, a supplier (e.g., a manufacturer) and its customer (e.g., a retailer), the latter in turn serving an uncertain market demand. To reconcile manufacturing/procurement time lags with a need for timely response to the market, such supply chains often must commit resources to production quantities based on forecasted rather than realized demand.

MSC:

90B05	Inventory, storage, reservoirs
91B42	Consumer behavior, demand theory

Keywords:

supply chain management; supply contracts