Long Term Whole Sale Price Contract on Durable Goods with Random Demand

摘要

A two-stage supply chain consists of a manufacturer and a retailer. Manufacturer acquire demand information through EDI. This makes it possible for upstream enterprise to manage inventory and determine output. If the supply chain members keep long and stable relationship,the performance of the supply chain that sell a nonperishable product to end customers can be improved. The efficient or optimal output quantity can be achieved through introducing penalty contract