In recent years, performance-based contracting (PBC) has emerged as an e¤ective means to manage relationships with suppliers who provide services for maintenances of high-valued products. It has been documented that PBC promotes improvement of product reliability, a key determinant of product performance and overall cost. However, nontrivial challenges exist in a typical supply chain where mult...

In the literature of supply chain management (SCM), the traditional approach to balance supply and demand is to design bilateral supply contracts in order to provide mutual benefits to both sellers and buyers. The commonly used contract parameters include decision rights, pricing, minimum purchase commitments, quantity flexibility, buyback or returns policies, allocation rules, lead time, and q...

We analyze a firm designing and selling a seasonal product with demand uncertainty and a single ordering opportunity. Prior to the start of the selling season, product quality and inventory must be jointly determined; a higher quality product results in a greater selling price but also greater marginal production cost. We consider both a centralized supply chain, in which a single firm determin...

T paper studies the impact of strategic customer behavior on supply chain performance. We start with a newsvendor seller facing forward-looking customers. The seller initially charges a regular price but may salvage the leftover inventory at a lower salvage price after random demand is realized. Customers anticipate future sales and choose purchase timing to maximize their expected surplus. We ...

aBstraCt In this document it is analyzed the importance of contracts for coordination between two companies in a supply chain. In the studied situation, one company, or supplier, supplies one product to the other company, who is a retailer. The companies are going to coordinate by two types of decisions: economic (concerning prices fixed on a contract), and physical exchange (concerning the inv...

We study competition and coordination in a supply chain in which a single supplier both operates a direct channel and sells its product through multiple differentiated retailers competing in quantities. We study analytically the supply chain with symmetric retailers and find that the supplier generally prefers to have as many retailers as possible in the market, even if the retailers’ equilibri...

This paper investigates supply chain coordination with side-payment contracts. We …rst summarize speci…c side-payment contracts and present our review on the literature that developed general sidepayment schemes to coordinate supply chains. Following our review, we discuss two criteria that a proper side-payment contract must satisfy, and accordingly introduce a decision-dependent transfer paym...

：Online game is a typical E-business indusry. Firstly, the problem is pointed out that the present researches on supply chain contracts designed for tangible traditional products have not considered the characteristic of intangible products such as online game industry. Secondly, the members and operation progress of the supply chain are explored in online game industry. Thirdly, a new supply c...

We consider a general multi-principal multi-agent contracting game in a complete-information supply-chain setting and determine coordinating equilibrium transfer schedules in closed form. The resulting contracts manage to align incentives for decentralized decision-making and achieve first-best channel solutions. We allow for multidimensional actions and arbitrary payoff externalities between a...

We explore in this paper the performance of sales rebate contracts in fashion supply chains. We conduct both analytical and numerical analyses via a mean-variance framework with reference to real empirical data. To be specific, we evaluate the expected profits and variance of profits risk of the fashion supply chains, fashion retailers, and manufacturers under 1 the currently implemented sales ...