A Model for Evaluating Supply Contract with Minimum Quantity Commitment and Flexibility

Conference
Proceedings of the 2nd International Conference on Operations and Supply Chain Management
Publisher(s)
University of the Thai Chamber of Commerce
Date Issued
2007
Author(s)
Hartati, Verani
Siregar, Alibasyah
Abstract
Concept of supply chain management emphasizes the need for coordination and collaboration between firms to achieve a win-win situation for all the firms involved. The win-win situation in a coordinated supply chain was resulted from various sources, such as coordinated order process and delivery process. Supply contract is coordination mechanism that makes supply chain player’s decisions in order process, coherent among each other. Model in this paper studied a type of supply contract that is suitably used in an agriculture product manufacturer. The manufacturer has a specific demand distribution, and often material supplied by multi supplier whose plant location is far away from the manufacturer’s site. The distinguishing characteristic of this type of problem is capacitated delivery thus encourage supplier and manufacturer to create not only an order commitment but also a delivery commitment. The objective is to determine an order quantity to selected supplier and shipping schedule at minimum cost. A solution procedure is provided for the general problem and consideration is given to specific demand distribution.
Subject(s)
Access Rights
public
Rights
This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner.
Rights Holder(s)
University of the Thai Chamber of Commerce
Bibliographic Citation
Verani Hartati, Andi Cakravastia, Nur Bahagia, Alibasyah Siregar (2007) A Model for Evaluating Supply Contract with Minimum Quantity Commitment and Flexibility.
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