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Quantity Flexibility Contract in the Presence of Discount Incentive

机译：存在折扣激励的数量弹性合同

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We design a new contract, which we refer to as the QFi contract, that combines the quantity flexibility (QF) mechanism and the price-only discount incentive. Under the QF contract, the buyer does not assume full responsibility for the forecast, yet the supplier guarantees the availability of the forecasted quantity and extra buffer inventory. In contrast, the price-only discount contract places full inventory burden on the buyer. We show that the proposed QFi contract effectively balances the inventory risk for both the buyer and the supplier considering both the QF and discount mechanisms. We also show that the QFi contract is able to achieve supply chain coordination. More importantly, the QFi contract's coordinating price scheme does not require knowledge of demand distribution. We identify areas where the buyer and supplier may both benefit from implementing the QFi contract as opposed to the extant QF or price-only (wholesale) discount contractual decisions in a decentralized supply chain. We also specify the conditions under which supply chain coordination can be achieved in a win-win manner. We conclude with managerial implications and provide directions for future research.
机译：我们设计了一个新的合同，称为QFi合同，它结合了数量灵活性（QF）机制和仅价格折扣激励。根据QF合同，买方不对预测承担全部责任，但供应商保证提供预测的数量和额外的缓冲库存。相比之下，仅价格折扣合同使购买者承担了全部库存负担。我们表明，考虑到QF和折扣机制，拟议的QFi合同有效地平衡了买方和供应商的库存风险。我们还表明，QFi合同能够实现供应链协调。更重要的是，QFi合同的协调价格方案不需要了解需求分配。我们确定了买方和供应商都可以从实施QFi合同中受益的领域，而不是分散的供应链中现有的QF或仅价格（批发）折扣合同决策。我们还规定了以双赢的方式实现供应链协调的条件。我们以管理意义作为结论，并为将来的研究提供指导。

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