Designing a supply contract to coordinate supplier’s production, considering customer oriented production

Nosoohi, Iman; Nookabadi, Ali Shahandeh

doi:10.1016/j.cie.2014.04.012

Cited by 20 publications

(6 citation statements)

References 27 publications

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“…Unlike the above contracts, Nosoohi and Nookabadi [36] utilized an option to coordinate a customer-oriented production system, with a long lead-time and stochastic demand. Furthermore, Zhao et al [37] developed a bidirectional option contract, deriving closed-form expressions for the retailer's optimal initial order strategy and the option purchasing strategy to attain supply chain coordination.…”

Section: Supply Chain Coordinationmentioning

confidence: 99%

Optimization and Coordination of Crowdsourcing Supply Chain in Fast Fashion Industry

Liu

Zeng

et al. 2018

Mathematical Problems in Engineering

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Due to inadequate designers in fast fashion industry and the development of the Internet, small-and-medium-sized garment makers have gradually turned to external talents to enhance their new product design efficiency via crowdsourcing initiative. This paper presents a new framework of crowdsourcing supply chain for fast fashion industry. First, a basic multiperiod order model is established in a crowdsourcing supply chain system, where a garment maker chooses the best one among available solutions submitted by online designers (i.e., crowdsources) in each period, then transforms it into finished product, and sells to consumers through a retailer. Second, we extend this model by integrating the factors of capital turnover, the retailer’s risk-aversion, and the garment maker’s minimum production quantity. Moreover, utilizing wholesale price, buyback, and profit-sharing scheme designs a mixed contract for coordinating crowdsourcees, retailer, and garment maker of crowdsourcing supply chain for achieving Pareto optimality. The models help the garment maker determining the optimal production quantities of crowdsourcing designed products and enable the retailer placing the optimum orders and setting the reasonable risk level. In addition, we also find that the incentive policy for crowdsourcing designers can be fulfilled by using a profit-sharing scheme with a piecewise function of order quantity instead of a linear function.

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Section: Supply Chain Coordinationmentioning

confidence: 99%

Optimization and Coordination of Crowdsourcing Supply Chain in Fast Fashion Industry

Liu

Zeng

et al. 2018

Mathematical Problems in Engineering

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“…Several studies, for instance Wang and Liu (), Wang et al. (), Nosoohi and Nookabadi (), and Cai et al. (), focused on call options.…”

Section: Literature Reviewmentioning

confidence: 99%

Outsource planning with asymmetric supply cost information through a menu of option contracts

Nosoohi

Nookabadi

2017

Int Trans Operational Res

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This paper investigates a supply contract design by a dominant manufacturer who faces a stochastic demand during a selling season. The manufacturer has several estimations of the supplier's cost with corresponding probabilities, that is, asymmetric cost information. The manufacturer designs a menu of call option contracts that include three variables: a supply order, an option, and an exercise price. We determine the optimal negative correlation between option and exercise prices as well as closed-form formulas for the optimal supply orders. The results show that in the optimal menu of contracts either the option or the exercise price may be omitted from the menu, whereas the supply orders should always be customized for each supplier type. We show that in this problem, optimal profit assignment between contract partners under put and bidirectional option contracts is the same as call option contract studied. Numerical analysis including managerial insights is presented.

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“…Chen et al [23] considered coordinating a supply chain with a risk-neutral supplier and a risk-averse retailer with options. Nosoohi and Nookabadi [24] studied how the manufacturer uses option contracts to coordinate its customer-oriented production system. Under price-dependent demand, Hu et al [25] studied the supply chain coordination with joint pricing.…”

Section: Literature Reviewmentioning

confidence: 99%

Multisources Risk Management in a Supply Chain under Option Contracts

Luo

Zhang

Jiang

2019

Mathematical Problems in Engineering

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Uncertainties in product demand, component yield, and spot price are keys to many industrial settings and they are usually explicitly incorporated. This paper develops an analytical framework to value option contracts in hedging the risks in a supply chain consisting of a component supplier with random yield and a manufacturer facing stochastic demand for end products. The manufacturer can obtain the components from the supplier through firm order contracts and option contracts. Apart from the contract market, there is a spot market in which both the manufacturer and the supplier can buy or sell the components. Analytical expressions for the optimal ordering and production policies are derived. Our study shows that the manufacturer and the supplier can effectively deal with the risks they involve by adopting option contracts. However, we find that the supply chain cannot be coordinated by the traditional option contract. To coordinate such system, we propose a protocol to be combined with the option contract. Finally, the explicit condition for coordination under the proposed contracts is identified.

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Designing a supply contract to coordinate supplier’s production, considering customer oriented production

Cited by 20 publications

References 27 publications

Optimization and Coordination of Crowdsourcing Supply Chain in Fast Fashion Industry

Optimization and Coordination of Crowdsourcing Supply Chain in Fast Fashion Industry

Outsource planning with asymmetric supply cost information through a menu of option contracts

Multisources Risk Management in a Supply Chain under Option Contracts

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