 A composite contract based on buy back and quantity flexibility contractsHuachun Xiong, Bintong Chen and Jinxing Xie European Journal of Operational Research, 2011, vol. 210, issue 3, 559-567 Abstract: We introduce a composite (CP) contract for a two-stage supply chain by organically combining two component contracts: a buy back (BB) contract and a quantity flexibility (QF) contract. The CP contract is shown to have advantages over both component contracts in terms of supply chain coordination, profit allocation, and risk allocation. In particular, we obtain the following results: (a) as long as one of the component contracts is able to coordinate the supply chain, so is the CP contract. Moreover, when contract parameters are constrained, we find situations where the CP contract coordinates the supply chain when neither of the component contracts coordinates. (b) When contract parameters are constrained, the CP contract is more flexible in terms of profit allocation among supply chain members than the component contracts. (c) The CP contract is more flexible in terms of risk allocation than the component contracts. Keywords: Supply; chain; management; Contract; design; Coordination; Profit; allocation; Risk; allocation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:210:y:2011:i:3:p:559-567 Access Statistics for this article European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.