Effect of Demand Signal Quality on Supply Chain Contracts

摘要

This paper studies the impact of the demand signal quality on order quantity and capacity allocation decisions in asupply chain. The paper considers a two-stage supply chain with single-manufacturer and single supplier under anoptions-futures contract and forecast information sharing in a single selling season. The paper provides optimal num-berof futures and options for manufacturer’s ordering policy and supplier’s optimal production level in response andshows the effect of demand signal quality on these optimal solutions.