Two-Wholesale-Price Contracts: Push, Pull, and Advance ...
Jul 1, 2007 · When the two wholesale prices change, we illustrate how the inventory decision rights and ownership are shifted and/or shared between the two firms, resulting in push, pull, …
Hedging demand uncertainty in a two-echelon supply chain ...
Feb 1, 2025 · To hedge against demand uncertainties, manufacturers typically employ Advance Purchase Discount (APD) contracts to reduce the risk of rush orders (Yang et al. (2020)), while …
Using Advance Purchase Discount Contracts under Uncertain ...
In this section, we introduce a stylized model that captures the characteristics of our focal business setting and then discuss the implementation of an advance purchase discount contract.
Advance Purchase Discounts for Supply Chain Finance System ...
Dec 4, 2020 · A supply contract, namely the Advance Purchase Discount (APD) program, was modelled as a contract option to coordinate the capital flow and improve the efficiency of a two …
In this section, we introduce a stylized model that captures the characteristics of our focal business set-ting and then discuss the implementation of an advance purchase discount contract.
If the monopolist offers an advance-purchase discount (i.e., an increasing price path), consumers face a trade-off: they can either buy early at a discount or else wait and make their purchasing …
An advance-purchase discount has two wholesale prices: a discounted price for inventory pur- chased before the season, and a regular price for replenishments during the selling season.