This book is devoted to analysis and design of supply chain contracts with stochastic demand.
Given the extensive utilization of contracts in supply chains the issues concerning contract
analysis and design are extremely important for supply chain management (SCM) and substantial
research has been developed to address those issues over the past years. Despite the abundance
of classical research new research needs to be conducted in response to new issues emerging
with the recent changing business environments such as the fast-shortening life cycle of
product and the increasing globalization of supply chains. This book addresses these issues
with the intention to present new research on how to apply contracts to improve SCM.Contract
Analysis and Design for Supply Chains with Stochastic Demand contains eight chapters and each
chapter is summarized as follows: Chapter 1 provides a comprehensive review of the classical
development of supply chain contracts. Chapter 2 examines the effects of demand uncertainty on
the applicability of buyback contracts. Chapter 3 conducts a mean-risk analysis for wholesale
price contracts taking into account contracting value risk and risk preferences. Chapter 4
studies the optimization of product service system by franchise fee contracts in the
service-oriented manufacturing supply chain with demand information asymmetry. Chapter 5
develops a bidirectional option contract model and explores the optimal contracting decisions
and supply chain coordination issue with the bidirectional option. Chapter 6 addresses supply
chain options pricing issue and a value-based pricing scheme is developed for the supply chain
options. With a cooperative game theory approach Chapter 7 explores the issues concerning
supply chain contract selection implementation with the option contract under consideration.
Chapter 8 concludes the book and suggests worthy directions for future research.
