Abstract
This paper considers a dyadic supply chain formed by one retailer and one supplier, and compares the performances for both companies and for the whole chain as a single unit under two types of contracts: option and capacity reservation contracts. Under an option contract, the retailer orders a quantity of units and has a right to modify his order in any sense (it may be bigger or smaller than the initial order), without restrictions by buying the option premium in advance from the supplier. Under a capacity reservation contract, the retailer reserves a number of units from the supplier and after receiving more information about demand, he will pass his final order. Firstly, the theoretical bases are introduced for each contract, next both models are compared, then simulation results are presented and discussed, and finally, we concluded.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Industrial and Systems Engineering
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
