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About Supply Chain Contracts
1) Supply chain contracts can be used to share risks and optimize profits between members of a supply chain. Contracts may address pricing, quantities, returns, and other terms. 2) In a two-stage supply chain example of retailers and manufacturers, the retailer forecasts demand and places orders, while the manufacturer produces to order. Risk is not shared. 3) Contracts like buy-back agreements, where manufacturers agree to buy unsold goods, and revenue sharing contracts can incentivize higher order quantities, reducing stock-outs while increasing profits for all parties. 4) For make-to-stock supply chains, pay-back contracts where distributors agree to pay for unsold inventory, and cost
Detailed Information
| Author: | ['baboonijj'] |
|---|---|
| Publication Year: | 2015 |
| Pages: | 41 |
| Language: | English |
| Format: | |
| Price: | FREE |
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