Composite Contracts in Supply Chain

Supply chain coordination is very important nowadays because of the increasing number of cooperating partners. Contracts can be used in order to provide a framework for the partners’ cooperation. In this paper, two contract types are analysed. Take-it-or-leave-it contracts are often used by decentra...

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Main Author: Tamás Faludi
Format: Article
Language:English
Published: University of Miskolc 2020-08-01
Series:Theory, Methodology, Practice
Subjects:
Online Access:https://doi.org/10.18096/TMP.2020.01.01
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author Tamás Faludi
author_facet Tamás Faludi
author_sort Tamás Faludi
collection DOAJ
description Supply chain coordination is very important nowadays because of the increasing number of cooperating partners. Contracts can be used in order to provide a framework for the partners’ cooperation. In this paper, two contract types are analysed. Take-it-or-leave-it contracts are often used by decentralized supply chains, but include some attributes from centralized settings. The quantity discount can be used in any type of supply chain. Centralized and decentralized settings of supply chains are also discussed in the paper. A numerical example compares the rates which determine the coordination power of the contract types. The paper suggest some other composite contracts to enhance the performance of supply chains.
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spelling doaj.art-d9471e092141403e91a8bd04a43661602023-05-25T12:17:45ZengUniversity of MiskolcTheory, Methodology, Practice1589-34132415-98832020-08-0116139Composite Contracts in Supply Chain Tamás Faludi 0University of Miskolc Supply chain coordination is very important nowadays because of the increasing number of cooperating partners. Contracts can be used in order to provide a framework for the partners’ cooperation. In this paper, two contract types are analysed. Take-it-or-leave-it contracts are often used by decentralized supply chains, but include some attributes from centralized settings. The quantity discount can be used in any type of supply chain. Centralized and decentralized settings of supply chains are also discussed in the paper. A numerical example compares the rates which determine the coordination power of the contract types. The paper suggest some other composite contracts to enhance the performance of supply chains.https://doi.org/10.18096/TMP.2020.01.01 supply chain managementsupply chain coordinationcontract typesquantity discounttake-it-or-leave-it
spellingShingle Tamás Faludi
Composite Contracts in Supply Chain
Theory, Methodology, Practice
supply chain management
supply chain coordination
contract types
quantity discount
take-it-or-leave-it
title Composite Contracts in Supply Chain
title_full Composite Contracts in Supply Chain
title_fullStr Composite Contracts in Supply Chain
title_full_unstemmed Composite Contracts in Supply Chain
title_short Composite Contracts in Supply Chain
title_sort composite contracts in supply chain
topic supply chain management
supply chain coordination
contract types
quantity discount
take-it-or-leave-it
url https://doi.org/10.18096/TMP.2020.01.01
work_keys_str_mv AT tamasfaludi compositecontractsinsupplychain