TY - GEN
T1 - Supply chain contracts for quality investment incentives
AU - Xu, Fang
AU - Li, Jian
AU - Yang, Fengmei
PY - 2012
Y1 - 2012
N2 - This paper investigates contracts for quality investment incentives in a supply chain consisting of an original equipment manufacturer (OEM) and a contractmanufacturer (CM) with price- and quality-sensitive demand. The OEM outsources the production to the CM who invests to guarantee quality, while the OEM is responsible for product sales and product pricing. We analyze their individual optimal strategies under three types of contract, i.e., a wholesale price contract, a revenue sharing contract, and a cost sharing contract. We also explore the best contract from the perspective of the whole supply chain performance.
AB - This paper investigates contracts for quality investment incentives in a supply chain consisting of an original equipment manufacturer (OEM) and a contractmanufacturer (CM) with price- and quality-sensitive demand. The OEM outsources the production to the CM who invests to guarantee quality, while the OEM is responsible for product sales and product pricing. We analyze their individual optimal strategies under three types of contract, i.e., a wholesale price contract, a revenue sharing contract, and a cost sharing contract. We also explore the best contract from the perspective of the whole supply chain performance.
KW - Cost sharing contract
KW - Quality investment
KW - Revenue sharing contract
KW - Wholesale price contract
UR - http://www.scopus.com/inward/record.url?scp=84867903039&partnerID=8YFLogxK
U2 - 10.1109/CSO.2012.167
DO - 10.1109/CSO.2012.167
M3 - Conference contribution
AN - SCOPUS:84867903039
SN - 9780769546902
T3 - Proceedings of the 2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012
SP - 733
EP - 736
BT - Proceedings of the 2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012
T2 - 2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012
Y2 - 23 June 2012 through 26 June 2012
ER -