A MODEL FOR EVALUATING SUPPLY CONTRACT WITH MINIMUM QUANTITY COMMITMENT AND FLEXIBILITY
No Thumbnail Available
Files
Date
2007-05-18
Journal Title
Journal ISSN
Volume Title
Publisher
School of Engineering & University of the Thai Chamber of Commerce
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.
Description
Keywords
Supply Contracts, Minimum Quantity Commitment, Delivery Commitment