2026-09-21T21:25:51Zhttps://dspace.mit.edu/server/oai/requestoai:dspace.mit.edu:1721.1/285772026-06-06T01:03:30Zcom_1721.1_7582com_1721.1_7581com_1721.1_101402col_1721.1_131023col_1721.1_101610
James M. Masters.
Prisby, Craig K. (Craig Kanoa), 1971-
Massachusetts Institute of Technology. Engineering Systems Division.
Massachusetts Institute of Technology. Engineering Systems Division
2005-09-27T17:07:25Z
2005-09-27T17:07:25Z
2003
2003
http://hdl.handle.net/1721.1/28577
57468300
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2003.
Includes bibliographical references (p. 24).
Supply contracts are used to maximize profits in a supply chain by coordinating order quantities between the suppliers and retailers. In traditional supply contracts, retailers use a newsvendor approach to maximize their profits, while the supplier's profits increase linearly as a function of the number of units supplied to retailers. Initially, retailers assume risk in the supply chain because they are facing an unknown demand, and the suppliers assume no risk. This thesis looks at an example from the garment industry where retailers order to replenish stock after a small assortment buy is placed at the start of the finite selling season. The suppliers must place production orders for the entire selling season before the selling season begins. It is clear see that the retailers assume little risk in this model, while the supplier faces significant risk, especially if its forecasting methods are not accurate. The levels of risk that each assumes in this model are reversed when compared to the traditional supply contract model. A method is developed that coordinates the retailer ordering with the supplier's production schedule. It is shown that coordinating the supply chain's ordering will lead to higher profits than the current, uncoordinated model.
by Craig K. Prisby.
M.Eng. in Logistics
25 p.
1147349 bytes
1147398 bytes
application/pdf
application/pdf
en_US
Massachusetts Institute of Technology
M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.
http://dspace.mit.edu/handle/1721.1/7582
Engineering Systems Division.
Coordinating the multi-retailer, single supplier procurement processes for a seasonal product with supply contracts
Thesis
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<Abstract>Supply contracts are used to maximize profits in a supply chain by coordinating order quantities between the suppliers and retailers. In traditional supply contracts, retailers use a newsvendor approach to maximize their profits, while the supplier's profits increase linearly as a function of the number of units supplied to retailers. Initially, retailers assume risk in the supply chain because they are facing an unknown demand, and the suppliers assume no risk. This thesis looks at an example from the garment industry where retailers order to replenish stock after a small assortment buy is placed at the start of the finite selling season. The suppliers must place production orders for the entire selling season before the selling season begins. It is clear see that the retailers assume little risk in this model, while the supplier faces significant risk, especially if its forecasting methods are not accurate. The levels of risk that each assumes in this model are reversed when compared to the traditional supply contract model. A method is developed that coordinates the retailer ordering with the supplier's production schedule. It is shown that coordinating the supply chain's ordering will lead to higher profits than the current, uncoordinated model.</Abstract>
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