000170313 001__ 170313
000170313 005__ 20190702152709.0
000170313 0247_ $$2doi$$a10.1111/j.1937-5956.2011.01301.x
000170313 022__ $$a1059-1478
000170313 02470 $$2ISI$$a000306312000005
000170313 037__ $$aARTICLE
000170313 245__ $$aDesigning Service Level Contracts for Supply Chain Coordination
000170313 269__ $$a2012
000170313 260__ $$c2012
000170313 336__ $$aJournal Articles
000170313 520__ $$aSupply contracts are used to coordinate the activities of the supply chain partners. In many industries, service level-based supply contracts are commonly used. Under such a contract, a company agrees to achieve a certain service level and to pay a financial penalty if it misses it. The service level used in our study refers to the fraction of a manufacturer's demand filled by the supplier. We analyze two types of service level-based supply contracts that are designed by a manufacturer and offered to a supplier. The first type of contract is a flat penalty contract, under which the supplier pays a fixed penalty to the manufacturer in each period in which the contract service level is not achieved. The second type of contract is a unit penalty contract, under which a penalty is due for each unit delivered fewer than specified by the parameters of the contract. We show how the supplier responds to the contracts and how the contract parameters can be chosen, such that the supply chain is coordinated. We also derive structural results about optimal values of the contract parameters, provide numerical results, and connect our service level measures to traditional service level measures. The results of our analyses can be used by decision makers to design optimal service level contracts and to provide them with a solid foundation for contract negotiations.
000170313 6531_ $$aSupply Chain
000170313 700__ $$aSieke, Marcel
000170313 700__ $$0243643$$g162367$$aSeifert, Ralf W.
000170313 700__ $$aThonemann, U. W.
000170313 773__ $$q698-714$$k4$$j21$$tProduction and Operations Management
000170313 8560_ $$filona.ball@epfl.ch
000170313 8564_ $$s563707$$uhttps://infoscience.epfl.ch/record/170313/files/Sieke_et_al-2012-Production_and_Operations_Management.pdf
000170313 909CO $$particle$$pCDM$$ooai:infoscience.tind.io:170313
000170313 909C0 $$xU10934$$0252253$$pTOM
000170313 917Z8 $$x104689
000170313 917Z8 $$x104689
000170313 917Z8 $$x113441
000170313 917Z8 $$x148230
000170313 917Z8 $$x113441
000170313 917Z8 $$x148230
000170313 937__ $$aEPFL-ARTICLE-170313
000170313 973__ $$rREVIEWED$$sPUBLISHED$$aEPFL
000170313 980__ $$aARTICLE