Skip Navigation



IMA Journal of Management Mathematics Advance Access published online on February 28, 2007
IMA Journal of Management Mathematics, doi:10.1093/imaman/dpm003
This Article
Right arrow Full Text (PDF)
Right arrow All Versions of this Article:
19/1/17    most recent
dpm003v1
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Wang, W.
Right arrow Articles by Kobbacy, K. A. H.
Right arrow Search for Related Content
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

© The authors 2007. Published by Oxford University Press on behalf of the Institute of Mathematics and its Applications. All rights reserved.

Analysis of supply contracts from a supplier's perspective

Wenbin Wang{dagger}

Centre for Operational Research and Applied Statistics, University of Salford, Salford, M5 4WT, UK and School of Management, Harbin Institute of Technology, Harbin, 150001, China

Hexin Wang and Khairy A. H. Kobbacy

Centre for Operational Research and Applied Statistics, University of Salford, Salford, M5 4WT, UK

{dagger} Email: w.wang{at}salford.ac.uk

Received on 9 May 2006. Accepted on 22 December 2006.


  Abstract

Incentive structure and demand uncertainty may cause supply chains to operate at a low efficiency. Therefore, many supply contracts are employed in practice to improve the performance of supply chains, i.e. to benefit all members involved in the chain. Supply chain contracts provide mechanisms to change the incentive structures of the supply chain members so that their decisions can improve the supply chain efficiency, while also protect their own interests. It is important to understand the impacts of supply contracts and their differences from a supplier's perspective, since it is often the supplier who initiates a supply contract. This paper reports on a comprehensive analysis of supply contracts from a supplier's perspective. Six commonly used supply contracts are analysed and the contract parameters are optimized to maximize the supplier's expected profit with consideration to improve the retailer's profit. This case has not been thoroughly investigated in literature to date. The risk-sharing mechanism and the division of the increased profit between the retailer and supplier for some of the contracts are also investigated in detail.

Keywords: supply chain contracts; Pareto improvement; intelligent decision support systems


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?




Disclaimer:
Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.