Contract analysis

A performance measures and profit evaluation within two-echelon supply chains

Kannan Govindan, Ali Diabat, Maria Nicoleta Popiuc

    Research output: Contribution to journalArticle

    Abstract

    Coordination is regarded as key in managing dependencies between distinctive members of a supply chain through the benefits of coordination mechanisms. Such coordination mechanisms are contracts, implemented to increase total supply chain profit, reduce costs and share risk among supply chain members. However, by contract implementation the retailer is constrained in his purchase by bearing the entire risk of holding the inventory (wholesale price contract) or by limited risk allocated to the supplier (buyback, revenue sharing and quantity flexibility contracts). By implementing an advanced purchase system the risk of inventory is fairly divided between the supplier and the retailer. In order to observe inventory implications on the supply chain bottom line, this article is directed towards the evaluation of performance measures and supply chain profit behavior under buyback, revenue sharing, quantity flexibility and advanced purchase discount contracts versus no coordination and wholesale price systems.

    Original languageEnglish (US)
    Pages (from-to)58-74
    Number of pages17
    JournalComputers and Industrial Engineering
    Volume63
    Issue number1
    DOIs
    StatePublished - Aug 1 2012

    Fingerprint

    Supply chains
    Profitability
    Bearings (structural)
    Costs

    Keywords

    • Contract
    • Supply chain coordination
    • To-level supply chain

    ASJC Scopus subject areas

    • Computer Science(all)
    • Engineering(all)

    Cite this

    Contract analysis : A performance measures and profit evaluation within two-echelon supply chains. / Govindan, Kannan; Diabat, Ali; Popiuc, Maria Nicoleta.

    In: Computers and Industrial Engineering, Vol. 63, No. 1, 01.08.2012, p. 58-74.

    Research output: Contribution to journalArticle

    Govindan, Kannan ; Diabat, Ali ; Popiuc, Maria Nicoleta. / Contract analysis : A performance measures and profit evaluation within two-echelon supply chains. In: Computers and Industrial Engineering. 2012 ; Vol. 63, No. 1. pp. 58-74.
    @article{7d6ca2b2480b4bafb93683fab0ba2cb1,
    title = "Contract analysis: A performance measures and profit evaluation within two-echelon supply chains",
    abstract = "Coordination is regarded as key in managing dependencies between distinctive members of a supply chain through the benefits of coordination mechanisms. Such coordination mechanisms are contracts, implemented to increase total supply chain profit, reduce costs and share risk among supply chain members. However, by contract implementation the retailer is constrained in his purchase by bearing the entire risk of holding the inventory (wholesale price contract) or by limited risk allocated to the supplier (buyback, revenue sharing and quantity flexibility contracts). By implementing an advanced purchase system the risk of inventory is fairly divided between the supplier and the retailer. In order to observe inventory implications on the supply chain bottom line, this article is directed towards the evaluation of performance measures and supply chain profit behavior under buyback, revenue sharing, quantity flexibility and advanced purchase discount contracts versus no coordination and wholesale price systems.",
    keywords = "Contract, Supply chain coordination, To-level supply chain",
    author = "Kannan Govindan and Ali Diabat and Popiuc, {Maria Nicoleta}",
    year = "2012",
    month = "8",
    day = "1",
    doi = "10.1016/j.cie.2012.01.010",
    language = "English (US)",
    volume = "63",
    pages = "58--74",
    journal = "Computers and Industrial Engineering",
    issn = "0360-8352",
    publisher = "Elsevier Limited",
    number = "1",

    }

    TY - JOUR

    T1 - Contract analysis

    T2 - A performance measures and profit evaluation within two-echelon supply chains

    AU - Govindan, Kannan

    AU - Diabat, Ali

    AU - Popiuc, Maria Nicoleta

    PY - 2012/8/1

    Y1 - 2012/8/1

    N2 - Coordination is regarded as key in managing dependencies between distinctive members of a supply chain through the benefits of coordination mechanisms. Such coordination mechanisms are contracts, implemented to increase total supply chain profit, reduce costs and share risk among supply chain members. However, by contract implementation the retailer is constrained in his purchase by bearing the entire risk of holding the inventory (wholesale price contract) or by limited risk allocated to the supplier (buyback, revenue sharing and quantity flexibility contracts). By implementing an advanced purchase system the risk of inventory is fairly divided between the supplier and the retailer. In order to observe inventory implications on the supply chain bottom line, this article is directed towards the evaluation of performance measures and supply chain profit behavior under buyback, revenue sharing, quantity flexibility and advanced purchase discount contracts versus no coordination and wholesale price systems.

    AB - Coordination is regarded as key in managing dependencies between distinctive members of a supply chain through the benefits of coordination mechanisms. Such coordination mechanisms are contracts, implemented to increase total supply chain profit, reduce costs and share risk among supply chain members. However, by contract implementation the retailer is constrained in his purchase by bearing the entire risk of holding the inventory (wholesale price contract) or by limited risk allocated to the supplier (buyback, revenue sharing and quantity flexibility contracts). By implementing an advanced purchase system the risk of inventory is fairly divided between the supplier and the retailer. In order to observe inventory implications on the supply chain bottom line, this article is directed towards the evaluation of performance measures and supply chain profit behavior under buyback, revenue sharing, quantity flexibility and advanced purchase discount contracts versus no coordination and wholesale price systems.

    KW - Contract

    KW - Supply chain coordination

    KW - To-level supply chain

    UR - http://www.scopus.com/inward/record.url?scp=84857002670&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=84857002670&partnerID=8YFLogxK

    U2 - 10.1016/j.cie.2012.01.010

    DO - 10.1016/j.cie.2012.01.010

    M3 - Article

    VL - 63

    SP - 58

    EP - 74

    JO - Computers and Industrial Engineering

    JF - Computers and Industrial Engineering

    SN - 0360-8352

    IS - 1

    ER -