A study on preconditions setting of long-term contract between manufacturer and component supplier

Sidi Wu, Hisashi Onari

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Abstract

    To provide a risk-sharing mechanism that encourages a component supplier and a manufacturer to expand their production capacity of components and products, many researches on SCM suggested that it is better for the SC players to connect a long-term contract with flexible preconditions before doing the decision-making of production capacity. With considering of the uncertainty of demand and integrity problems between SC players, it is difficult to set reasonable preconditions. As a result, under-investment problems still occur frequently. In this paper, after we had discussed the decision-making of production capacity with the preconditions by analyzing the character of the players, we verified the under-investment problem of the supply chain. In order to clarify the optimum preconditions to alleviate the under-investment problem, we also analyzed the relations between preconditions and supply capacity of the whole supply chain. In the last part of this paper, we proposed a method of preconditions setting in such uncertain situations.

    Original languageEnglish
    Title of host publication23rd International Conference for Production Research, ICPR 2015
    PublisherInternational Foundation for Production Research (IFPR)
    Publication statusPublished - 2015
    Event23rd International Conference for Production Research, ICPR 2015 - Manila, Philippines
    Duration: 2015 Aug 22015 Aug 6

    Other

    Other23rd International Conference for Production Research, ICPR 2015
    CountryPhilippines
    CityManila
    Period15/8/215/8/6

    Fingerprint

    Supply chains
    Decision making
    Uncertainty

    Keywords

    • Contract
    • Production capacity
    • Supply chain management
    • Under investment

    ASJC Scopus subject areas

    • Computer Science Applications
    • Control and Systems Engineering
    • Industrial and Manufacturing Engineering

    Cite this

    Wu, S., & Onari, H. (2015). A study on preconditions setting of long-term contract between manufacturer and component supplier. In 23rd International Conference for Production Research, ICPR 2015 International Foundation for Production Research (IFPR).

    A study on preconditions setting of long-term contract between manufacturer and component supplier. / Wu, Sidi; Onari, Hisashi.

    23rd International Conference for Production Research, ICPR 2015. International Foundation for Production Research (IFPR), 2015.

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Wu, S & Onari, H 2015, A study on preconditions setting of long-term contract between manufacturer and component supplier. in 23rd International Conference for Production Research, ICPR 2015. International Foundation for Production Research (IFPR), 23rd International Conference for Production Research, ICPR 2015, Manila, Philippines, 15/8/2.
    Wu S, Onari H. A study on preconditions setting of long-term contract between manufacturer and component supplier. In 23rd International Conference for Production Research, ICPR 2015. International Foundation for Production Research (IFPR). 2015
    Wu, Sidi ; Onari, Hisashi. / A study on preconditions setting of long-term contract between manufacturer and component supplier. 23rd International Conference for Production Research, ICPR 2015. International Foundation for Production Research (IFPR), 2015.
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