Random yield supply chain with a yield dependent secondary market

Random yield affects production decisions and performances of all parties in a supply chain. We study a simple supply chain with one supplier and one retailer where there is random yield production, uncertain demand, and a yield dependent spot market to acquire or to dispose additional products. We compare the risk sharing decisions with centralized decisions, and evaluate the supply chain performances under different contract settings.

• Type: Journal
• Year: 2010
• Where: EOR
• Authors: Yuanjie He, Jiang Zhang
• Keywords: Affects Production Decisions, EOR 2010, Supply Chain, Yield Dependent Spot