Relational Supply Contracts

Released on by Michaela Isabel Höhn
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  • Relational Supply Contracts Book Detail

  • Author : Michaela Isabel Höhn
  • Release Date : 2009-10-03
  • Publisher : Springer Science & Business Media
  • Genre : Business & Economics
  • Pages : 134
  • ISBN 13 : 3642027911
  • File Size : 98,98 MB
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Relational Supply Contracts by Michaela Isabel Höhn PDF Summary

Book Description: Supply relations are often governed by so-called relational contracts. These are informal agreements sustained by the value of future cooperation. Although relational contracts persist in practice, research on these types of contract is only emerging in Operations and Supply Chain Management. This book studies a two-firm supply chain, where repeated transactions via well-established supply contracts and continued quality-improvement efforts are governed by a relational contract. We are able to characterize an optimal relational contract, i.e., to develop policies for supplier and buyer that structure investments in quality and flexibility in a way that no other self-enforcing contract generates higher expected joint surplus. A second goal is to compare the performance of different returns mechanisms in the context of relational contracting (quantity flexibility and buy-back contracts). Industry studies motivate the presented model.

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