On the design of coordinating contracts
نویسندگان
چکیده
We concentrate on a principal and agent system often seen in supply chain management studies. Under reasonable conditions, we show that a nearly systematic three-step method can be used to find coordination contracts for the system. The number of terms involved in our contract is in some sense positively correlated with the degree of information asymmetry between the principal and agent. Several known contract types for the supplier–retailer newsvendor system can be viewed as special cases resulting from applications of this method. Following our three-step approach, we succeed in identifying coordinating contracts for a supply chain involving two products and unobservable retailer efforts. & 2009 Elsevier B.V. All rights reserved.
منابع مشابه
Coordinating a decentralized supply chain with a stochastic demand using quantity flexibility contract: a game-theoretic approach
Supply chain includes two or more parties linked by flow of goods, information, and funds. In a decentralized system, supply chain members make decision regardless of their decision's effects on the performance of the other members and the entire supply chain. This is the key issue in supply chain management, that the mechanism should be developed in which different objectives should be align...
متن کاملCoordinating a Seller-Buyer Supply Chain with a Proper Allocation of Chain’s Surplus Profit Using a General Side-Payment Contract
In this paper, seller-buyer supply chain coordination with general side-payment contracts is introduced to gain the maximum possible chain profit. In our model, the logistics costs for both buyer and seller are considered and the final demand is also supposed to be a decreasing function of the retail price. Since parties aim to maximize their individual profits, the contractual parameters are s...
متن کاملEffective Contracts in Supply Chains
In the past decade, we have seen significant increase in the level of outsourcing in many industries. This increase in the level of outsourcing increases the importance of implementing effective contracts in supply chains. In this thesis, we study several issues in supply chain contracts. In the first part of the thesis, we study the impact of effort in a supply chain with multiple retailers. T...
متن کاملHorizontal coordinating contracts in the semiconductor industry
Integrated device manufacturers (IDMs) and foundries are two types of manufacturers in the semiconductor industry. IDMs integrate both design and manufacturing functions while foundries solely focus on manufacturing. Since foundries often have cost advantage over IDMs due to their specialization and economies of scale, IDMs have incentives to source from foundries for the purpose of avoiding ex...
متن کاملStable and Coordinating Contracts for a Supply Chain with Multiple RiskAverse Suppliers
W e analyze a decentralized supply chain with a single risk-averse retailer and multiple risk-averse suppliers under a Conditional Value at Risk objective. We define coordinating contracts and show that the supply chain is coordinated only when the least risk-averse agent bears the entire risk and the lowest-cost supplier handles all production. However, due to competition, not all coordinating...
متن کامل