Fast-Ship Commitment Contracts in Retail Supply Chains

@inproceedings{Chen2012FastShipCC,
  title={Fast-Ship Commitment Contracts in Retail Supply Chains},
  author={Hao-Wei Chen and Diwakar Gupta and Haresh Gurnani},
  year={2012}
}
We analyze three types of supply contracts between a supplier and a retailer when both agree as follows — if a customer experiences a stockout, then the purchased item can be shipped to the customer on an expedited basis at no extra cost. This practice is referred to as the fast-ship option in this paper. In the first contract (Structure A), the supplier specifies a total supply commitment and allows the retailer to choose its split between the initial order and the amount left to satisfy fast… CONTINUE READING

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