Two-stage flexible supply contract with payback and information update

Zied Jemai (), Ali Cheaitou, Christian van Delft (), Yves Dallery () and Ecole Paris
Additional contact information
Zied Jemai: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec
Ali Cheaitou: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec
Christian van Delft: GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique
Yves Dallery: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec

Post-Print from HAL

Abstract: In this paper we consider a two-stage supply contract model for advanced reservation of capacity, with payback option at the beginning of the selling horizon. Between the two decision stages, an external information is collected that serves to update the demand forecast and permits to adjust the decisions of the first stage by exercising options or by returning some units to the supplier. This type of contracts apply in the case of products with short life cycle. For this type of products, the demand occurs during a single selling period (season). At the end of the period, the remaining inventory, if any, is sold (or returned to the supplier) at a salvage value that is usually less than the initial unit production/procurement cost. During the selling season, any satisfied demand is charged with a unit selling price, and any unsatisfied demand is lost and a penalty shortage cost is paid. The objective of the model is to determine the quantities to be ordered before the beginning of the selling season which can be interpreted as the amount of capacity to be reserved, in order to satisfy optimally the demand.

Keywords: Supply contract; information update; payback; newsvendor; capacity reservation; dy- namic programming (search for similar items in EconPapers)
Date: 2008-03-31
References: Add references at CitEc
Citations:

Published in 7ème conférence internationale de modélisation et simulation (MOSIM), Mar 2008, Paris, France

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:hal:journl:hal-01672445

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().