COMPARISON OF THE PERFORMANCE OF A SUPPLY CHAIN UNDER REBATE AND OPTION CONTRACTS

The objective of this document is to compare the performance of the companies forming a dyadic supply chain, and for the chain as a single unit, under two types of contracts: option and rebate. The performance is measured in economic terms (benefits and costs) and in physical units (inventory held...

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Main Authors: Alejandra Gomez-Padilla, Tsutomu Mishina
Format: Article
Language:English
Published: Associação Brasileira de Engenharia de Produção (ABEPRO) 2011-11-01
Series:Brazilian Journal of Operations & Production Management
Subjects:
Online Access:https://bjopm.emnuvens.com.br/bjopm/article/view/134
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spelling doaj-fb41bd2b0a90436f808b07e0de1468d62020-11-24T23:08:03ZengAssociação Brasileira de Engenharia de Produção (ABEPRO)Brazilian Journal of Operations & Production Management2237-89602011-11-018COMPARISON OF THE PERFORMANCE OF A SUPPLY CHAIN UNDER REBATE AND OPTION CONTRACTSAlejandra Gomez-Padilla0Tsutomu Mishina1University of GuadalajaraAkita Prefectural University The objective of this document is to compare the performance of the companies forming a dyadic supply chain, and for the chain as a single unit, under two types of contracts: option and rebate. The performance is measured in economic terms (benefits and costs) and in physical units (inventory held and unsatisfied demand). The results will help to identify which is the better contract for a given set of parameters. Under an option contract, the retailer orders a quantity of units and has a right to modify his order (increase or decrease) by buying the option premium in advance from the supplier. Under a rebate contract, the supplier offers a rebate for the units ordered over a certain number of units previously fixed.  With an option contract, the retailer reserves a number of units from the supplier and, after receiving more information about demand, he will pass his final order. With a rebate contract, the retailer will decide from the beginning the number of units to order knowing the rebate condition (price and quantity). First the theoretical bases are introduced for each contract, next both models are compared by simulation. The simulation plan is presented and the results are discussed.https://bjopm.emnuvens.com.br/bjopm/article/view/134Supply chaincontractsrebateoption
collection DOAJ
language English
format Article
sources DOAJ
author Alejandra Gomez-Padilla
Tsutomu Mishina
spellingShingle Alejandra Gomez-Padilla
Tsutomu Mishina
COMPARISON OF THE PERFORMANCE OF A SUPPLY CHAIN UNDER REBATE AND OPTION CONTRACTS
Brazilian Journal of Operations & Production Management
Supply chain
contracts
rebate
option
author_facet Alejandra Gomez-Padilla
Tsutomu Mishina
author_sort Alejandra Gomez-Padilla
title COMPARISON OF THE PERFORMANCE OF A SUPPLY CHAIN UNDER REBATE AND OPTION CONTRACTS
title_short COMPARISON OF THE PERFORMANCE OF A SUPPLY CHAIN UNDER REBATE AND OPTION CONTRACTS
title_full COMPARISON OF THE PERFORMANCE OF A SUPPLY CHAIN UNDER REBATE AND OPTION CONTRACTS
title_fullStr COMPARISON OF THE PERFORMANCE OF A SUPPLY CHAIN UNDER REBATE AND OPTION CONTRACTS
title_full_unstemmed COMPARISON OF THE PERFORMANCE OF A SUPPLY CHAIN UNDER REBATE AND OPTION CONTRACTS
title_sort comparison of the performance of a supply chain under rebate and option contracts
publisher Associação Brasileira de Engenharia de Produção (ABEPRO)
series Brazilian Journal of Operations & Production Management
issn 2237-8960
publishDate 2011-11-01
description The objective of this document is to compare the performance of the companies forming a dyadic supply chain, and for the chain as a single unit, under two types of contracts: option and rebate. The performance is measured in economic terms (benefits and costs) and in physical units (inventory held and unsatisfied demand). The results will help to identify which is the better contract for a given set of parameters. Under an option contract, the retailer orders a quantity of units and has a right to modify his order (increase or decrease) by buying the option premium in advance from the supplier. Under a rebate contract, the supplier offers a rebate for the units ordered over a certain number of units previously fixed.  With an option contract, the retailer reserves a number of units from the supplier and, after receiving more information about demand, he will pass his final order. With a rebate contract, the retailer will decide from the beginning the number of units to order knowing the rebate condition (price and quantity). First the theoretical bases are introduced for each contract, next both models are compared by simulation. The simulation plan is presented and the results are discussed.
topic Supply chain
contracts
rebate
option
url https://bjopm.emnuvens.com.br/bjopm/article/view/134
work_keys_str_mv AT alejandragomezpadilla comparisonoftheperformanceofasupplychainunderrebateandoptioncontracts
AT tsutomumishina comparisonoftheperformanceofasupplychainunderrebateandoptioncontracts
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