Advanced Search

Query:

Fill in the form and click »Search«...

Format:

Display: entries per page entries

Zbl 1231.90047
Li, Chung-Lun; Kouvelis, Panos
Flexible and risk-sharing supply contracts under price uncertainty. (English)
[J] Manage. Sci. 45, No. 10, 1378-1398 (1999). ISSN 0025-1909; ISSN 1526-5501/e

Summary: We study supply contracts for deterministic demand but in an environment of uncertain prices. We develop valuation methodologies for different types of supply contracts. A ``time-inflexible contract'' requires the firm to specify not only how many units it will purchase, but also the timing of the purchase. A ``time-flexible contract'' allows the firm to specify the purchase amount over a given period of time without specifying the exact time of purchase. Other than time flexibility, the suppliers may offer ``quantity flexibility'' to the firm as well, i.e., purchase quantities could be within a prespecified quantity window. Finally, ``risk-sharing'' features can be incorporated in the contract in terms of the purchase price that the firm eventually pays to a supplier. Within a prespecified price window the firm pays the realized price, but outside of it the firm shares, in an agreed way, added costs or benefits.

MSC 2000:: *90B05 Inventory management
90B06 Transportation, logistics

Keywords: supply contracts; global operations; flexibility; binomial lattice

Comment on this Item PDF MathML XML ASCII DVI PS BibTeX Online Ordering Article Journal Journal

	Scientific prize winners of the ICM 2010
	Overhang
	Lie groups, physics and geometry. An introduction for physicists, engineers and chemists.

Advanced Search

Zentralblatt MATH Berlin [Germany]