The advance purchase discount contract
WebMar 16, 2024 · Specifically, he evaluated push contracts, pull contracts, and a hybrid of these two-called advance purchase discount contracts. In exploring these different types of contracts, Cachon [ 15 ] found that advance purchase discount contracts help to coordinate a supply chain most efficiently, as the inventory risk associated with it is shared between … WebJul 8, 2024 · Though advance-purchase discount contracts by themselves do not coordinate a supply chain, they do coordinate the supply chain when coupled with either (a) a minimum-order quantity requirement, or (b) an inventory management delegation contract. Combining advance-purchase discount and minimum-order-quantity can always coordinate a supply …
The advance purchase discount contract
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WebOzer and Wei 2006), and€ advance purchase discount (APD) contracts (Cachon 2004, Donohue 2000, Ozer€ and Wei 2006, Ozer et al. 2007). Among them, a typi-€ cal APD … WebMar 2, 2024 · An APD contract that ignores the retailer's cost or the wholesaler's uncertainty about it will yield fewer benefits for the wholesaler and the supply chain. We offer a numerical illustration (calibrated on real industry data) establishing that for a representative product, an APD contract can improve the wholesaler's profit margin by as much as 3.5%.
WebFeb 1, 2004 · Using Advance Purchase Discount Contracts under Uncertain Information Acquisition Cost 11 April 2024 Production and Operations Management, Vol. 26, No. 8 … WebMar 2, 2024 · An APD contract that ignores the retailer's cost or the wholesaler's uncertainty about it will yield fewer benefits for the wholesaler and the supply chain. We offer a …
WebWe study the use of advance purchase discount (APD) contracts to incentivize a retailer to share demand information with a dual‐sourcing ... An APD contract that ignores the retailer’s cost or the wholesaler’s uncertainty about it will yield fewer benefits for the wholesaler … WebIn terms of the specifics of our contract design, unlike Ozer and Wei [2006] who also consider a time sensitive discount contract in a restricted capacity context, we endogenize a previously exogenous contract parameter—the discount in the APD contract, to optimally incentivize self-
Web"Channel coordination in a consignment contract," European Journal of Operational Research, Elsevier, vol. 207(2), pages 897-905, December. Gérard P. Cachon, 2004. "The Allocation of Inventory Risk in a Supply Chain: Push, Pull, and Advance-Purchase Discount Contracts," Management Science, INFORMS, vol. 50(2), pages 222-238, February.
WebFeb 1, 2004 · An advance-purchase discount has two wholesale prices: a discounted price for inventory purchased before the season, and a regular price for replenishments during the selling season. Advance-purchase discounts allow for intermediate allocations of inventory risk: The retailer bears the risk on inventory ordered before the season while the supplier … my life with the walter brothers tv showWebAug 1, 2006 · The second is an advance purchase contract under which the manufacturer is induced to place a firm order before the supplier secures the component capacity used to build the end ... Using Advance Purchase Discount Contracts under Uncertain Information Acquisition Cost. 11 April 2024 Production and Operations Management, Vol ... my life won\\u0027t end without youWebMar 2, 2024 · An APD contract that ignores the retailer's cost or the wholesaler's uncertainty about it will yield fewer benefits for the wholesaler and the supply chain. We offer a numerical illustration (calibrated on real industry data) establishing that for a representative product, an APD contract can improve the wholesaler's profit margin by as much as 3.5%. my life with type 1 diabetesWebJul 1, 2024 · The allocation of inventory risk in a supply chain: Push, pull, and advance-purchase discount contracts. Management Science (2004) F. Chen et al. Quantifying the … my life won\u0027t end without youWebDong, L., & Zhu, K. (2007). Two-Wholesale-Price Contracts: Push, Pull, and Advance-Purchase Discount Contracts. Manufacturing & Service Operations Management, 9(3 ... my life with the walter brothersWebNov 19, 2024 · The purpose of this paper is to study how advanced information about customer needs obtained through an Advance Purchase Discount (APD) contract can be exploited to coordinate the capital flow and enhance the efficiency of a two-stage supply chain (SC) under decentralized control in cases of stochastic customer demand. We … my life with walter boysWebFeb 1, 2004 · An advance purchase discount (APD) contract could better realize risk-sharing of partners within a supply chain [19]. The retailer can obtain a discount by prepayment, ... my life with whitney houston