1 AIT Asian Institute of Technology

Analyzing a supplier's decision under the combination of long-term and penalty contracts

AuthorMarasinghe, Vishala Rashmini
NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Industrial and Manufacturing Engineering
PublisherAsian Institute of Technology
AbstractGame-theoretic approach is commonly used in supply chain management for mathematically analyses the effect of controllable factors on the decision parameters for make the supply chain more efficient and higher profitable for its members. Supply contracts are legal agreements which enhance collaboration and coordination among supply chain members in order to optimize supply chain performance. A combination of a long-term contract and a penalty contract for multiple periods in between a single supplier and a retailer is considered in this study (two stage supply contract). Demand is stochastic but uniformly distributed over the selling seasons of periods. The supplier’s capacity decision is required to be taken at the beginning of period when demand is unknown which means that before receiving the orders from the retailer. In this study, a mathematical model is constructed to examine and investigate supplier’s capacity decision when controllable factors are changed. The performance in term of supply chain coordination and profit allocation is considered by analyzing the total profits of both members individually.
KeywordGame-theoretic; Supply-chain; long-term contract; penalty contract; stochastic; capacity decision
Year2019
TypeThesis
SchoolSchool of Engineering and Technology (SET)
DepartmentDepartment of Industrial Systems Engineering (DISE)
Academic Program/FoSIndustrial Systems Engineering (ISE)
Chairperson(s)Huynh Trung Luong;
Examination Committee(s)Pisut Koomsap;Mongkol Ekpanyapong;
Scholarship Donor(s)AIT Fellowship;


Usage Metrics
View Detail0
Read PDF0
Download PDF0