首页 | 本学科首页   官方微博 | 高级检索  
     检索      


Analysis of supply contracts with quantity flexibility
Authors:Zhaotong Lian  Abhijit Deshmukh
Institution:1. Faculty of Business Administration, University of Macau, Macau SAR, China;2. Department of Industrial and Systems Engineering, Texas A&M University, TX 77843-3131, USA
Abstract:This paper explores a class of supply contracts under which a buyer receives discounts for committing to purchases in advance. The further in advance the commitment is made, the larger the discount. As time rolls forward, the buyer can increase the order quantities for future periods of the rolling horizon based on updated demand forecast information and inventory status. However, the buyer pays a higher per-unit cost for the incremental units. Such contracts are used by automobile and contract manufacturers, and are quite common in fuel oil and natural gas delivery markets. We develop a finite-horizon dynamic programming model to characterize the structure of the optimal replenishment strategy for the buyer. We present heuristic approaches to calculate the order volume in each period of the rolling horizon. Finally, we numerically evaluate the heuristic approaches and draw some managerial insights based on the findings.
Keywords:Supply contract  Inventory  Rolling horizon  Quantity flexibility  Dynamic programming
本文献已被 ScienceDirect 等数据库收录!
设为首页 | 免责声明 | 关于勤云 | 加入收藏

Copyright©北京勤云科技发展有限公司  京ICP备09084417号