Quantity Flexibility contract is an arrangement where parties agree upon a scheme of
forming ranges on volumes for their future transactions. The contract is based on
setting upper and lower limits on replenishment orders as simple multiples of point
estimates updated, published and committed by the buyers. We introduce a
manufacturer with a limited capacity / also capable of subcontracting, for deliveries
with a known lead time. He offers a Quantity Flexibility (QF) contract to a buyer
while he has an active contract with another buyer serving a market with known
demand forecast distributions. Using two-stage stochastic programming we study the
effects of flexibility multiples and the environmental factors on the buyers& / #8217 / incentives and manufacturer& / #8217 / s capacity planning. Finally, the motivations of the
Supply Chain actors to behave independently or to be involved into the integrated
iv
supply chain where information asymmetry is removed are investigated. Our
experiments underline the critical roles played by the forecast accuracy and
information sharing.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/1094291/index.pdf |
| Date | 01 January 2003 |
| Creators | Pesen, Safak |
| Contributors | Kayaligil, Sinan |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | M.S. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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