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Composite Contracts in Supply Chain

Author

Listed:
  • Tamás Faludi

    (University of Miskolc)

Abstract

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.

Suggested Citation

  • Tamás Faludi, 2020. "Composite Contracts in Supply Chain," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 16(01), pages 3-9.
    • Handle: RePEc:mic:tmpjrn:v:16:y:2020:i:01:p:3-9
    as

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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2020/01/TMP_2020_01_01.pdf
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    References listed on IDEAS

    as
    1. Richard Pibernik & Eric Sucky, 2006. "Centralised and decentralised supply chain planning," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 2(1/2), pages 6-27.
    2. Andy A. Tsay, 1999. "The Quantity Flexibility Contract and Supplier-Customer Incentives," Management Science, INFORMS, vol. 45(10), pages 1339-1358, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Supply Chain Management; Supply Chain Coordination; Contract Types; Quantity discount; Take-it-or-leave-it;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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