Selection of Supply Chain Contracts: The Case of Option Contracts

Yingxue Zhao, Xiaoge Meng, Shouyang Wang and T. C. Edwin Cheng
Additional contact information
Yingxue Zhao: University of International Business and Economics
Xiaoge Meng: Beijing University of Aeronautics and Astronautics
Shouyang Wang: Academy of Mathematics and Systems Science
T. C. Edwin Cheng: The Hong Kong Polytechnic University

Chapter Chapter 7 in Contract Analysis and Design for Supply Chains with Stochastic Demand, 2016, pp 145-167 from Springer

Abstract: Abstract Chapter 7 focuses on exploring issues concerning supply chain contract selection/implementation with the option contracts under consideration. From existing research it is known that various contracts have been developed to attain supply chain coordination and ensure arbitrary allocation of the resulting coordinating profit. However, since the extents to which the individuals involved improve their profits are different with different coordinating contracts, an important issue that remains to be resolved is how to select a coordinating contract that is acceptable for all the contracting partners. In Chap. 7 an effort to address this issue is made with the consideration of option contracts. In this research, the cooperative game approach is taken to consider the supply chain coordination issue with option contracts and to develop the contract negotiation model, taking into account supply chain members’ risk preferences and negotiating powers. The negotiation models developed with the option contract can be easily extended to other types of contracts such as the buyback contract, the revenue-sharing contract, the sales-rebate contract, etc. In this sense the research of this chapter presents a theoretical modeling framework for the selection/implementation issue of supply chain contracts.

Keywords: Option Contract; Supply Chain Members; Negotiation Power; Buyback Contract; Achieve Supply Chain Coordination (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:isochp:978-1-4899-7633-8_7

Ordering information: This item can be ordered from
http://www.springer.com/9781489976338

DOI: 10.1007/978-1-4899-7633-8_7

Access Statistics for this chapter

More chapters in International Series in Operations Research & Management Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().