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Zbl 1231.90065
Tsay, Andy A.
The quantity flexibility contract and supplier-customer incentives. (English)
[J] Manage. Sci. 45, No. 10, 1339-1358 (1999). ISSN 0025-1909; ISSN 1526-5501/e

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 2000:: *90B05 Inventory management
91B42 Consumer behavior etc.

Keywords: supply chain management; supply contracts

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