TY - JOUR
T1 - Flexible and risk-sharing supply contracts under price uncertainty
AU - Li, Chung-Lun
AU - Kouvelis, Panos
N1 - Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].
PY - 1999/10
Y1 - 1999/10
N2 - This study examines supply contracts for deterministic demand but in an environment of uncertain prices. Valuation methodologies are developed for different types of supply contracts. Optimal purchasing strategies for both time-flexible and time-inflexible contracts with risk-sharing features are discussed. The discussion illustrates how time flexibility, quantity flexibility, supplier selection, and risk sharing, when carefully exercised can effectively reduce the sourcing cost in environments of price uncertainty.
AB - This study examines supply contracts for deterministic demand but in an environment of uncertain prices. Valuation methodologies are developed for different types of supply contracts. Optimal purchasing strategies for both time-flexible and time-inflexible contracts with risk-sharing features are discussed. The discussion illustrates how time flexibility, quantity flexibility, supplier selection, and risk sharing, when carefully exercised can effectively reduce the sourcing cost in environments of price uncertainty.
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UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-0033207921&origin=recordpage
U2 - 10.1287/mnsc.45.10.1378
DO - 10.1287/mnsc.45.10.1378
M3 - RGC 21 - Publication in refereed journal
SN - 0025-1909
VL - 45
SP - 1378
EP - 1398
JO - Management Science
JF - Management Science
IS - 10
ER -