Option contracts: A solution for overloading problems in the delivery service supply chain

Journal of the Operational Research Society

Volumn 67, Issue 2, 2016, Pages 187-197

  Liu, Xin ^a   Gou, Qinglong ^a,b   Alwan, Layth ^c   Liang, Liang ^a,d  

^a UNIVERSITY OF SCIENCE AND TECHNOLOGY OF CHINA   (China)

^b UNIVERSITY OF TEXAS AT DALLAS   (United States)

^c UNIVERSITY OF WISCONSIN MILWAUKEE   (United States)

^d HEFEI UNIVERSITY OF TECHNOLOGY   (China)

Author keywords

channel coordination; delivery capacity; delivery service supply chain; option contract

Indexed keywords

ELECTRONIC COMMERCE; SUPPLY CHAINS;

CHANNEL COORDINATION; DELIVERY CAPACITY; DELIVERY SERVICE; NEWSVENDOR MODELS; OPTIMAL CAPACITY; OPTION CONTRACTS; REGULAR PERIODS; SERVICE CAPACITY;

SALES;

EID: 84955275225     PISSN: 01605682     EISSN: 14769360     Source Type: Journal    
DOI: 10.1057/jors.2014.133     Document Type: Article

References (25)

1. Agatz NA, Fleischmann M and Van Nunen JA (2008). E-fulfillment and multi-channel distribution-A review. European Journal of Operational Research 187(2): 339-356.
2. Barnes-Schuster D, Bassok Y and Anupindi R (2002). Coordination and flexibility in supply contracts with options. Manufacturing & Service Operations Management 4(3): 171-207.
3. Cachon GP and LariviereMA(2001). Contracting to assure supply: How to share demand forecasts in a supply chain. Management Science 47(5): 629-646.
4. Cachon GP (2003). Supply chain coordination with contracts. In: Kok AG and Graves S (eds) Handbooks in Operations Research and Management Science, 11: Supply Chain Management: Design, Coordination and Operation. North-Holland: Amsterdam, pp 227-339.
5. Carbone J (2001). Cross-functional teams: HP buyers get hands on design. Purchasing 130(14): 37-43.
6. Cheng F, Ettl M, Lin GY, Schwarz M and Yao DD (2003). Flexible supply contracts via options. Working Paper. IBM TJ Watson Research Center: New York.
7. Donohue KL (2000). Efficient supply contracts for fashion goods with forecast updating and two production modes. Management Science 46(11): 1397-1411.
8. Eppen GD and Iyer AV (1997). Backup agreements in fashion buying-The value of upstream flexibility. Management Science 43(11): 1469-1487.
9. Goedkoop MJ, van Halen CJG, te Riele HRM and Rommens PJM (1999). Product service systems, ecological and economic basis. Report for Dutch Ministries of Environment (VROM) and Economic Affairs (EZ). http://teclim. ufba. br/~jsfurtado/indicadores/holan%20 Product%20Service%20Systems%20main%20report. pdf, accessed 1 December 2008.
10. Grewal D, Iyer GR and Levy M (2004). Internet retailing: Enablers, limiters and market consequences. Journal of Business Research 57(7): 703-713.
11. Khouja M (1999). The single-period (news-vendor) problem: Literature review and suggestions for future research. Omega 27(5): 537-553.
12. Leung LC, Cheung W and Van Hai Y (2000). A framework for a logistics e-commerce community network: The Hong Kong air cargo industry. IEEE Transactions on Systems, Man and Cybernetics, Part A: Systems and Humans 30(4): 446-455.
13. Ramos TRP and Oliveira RC (2011). Delimitation of service areas in reverse logistics networks with multiple depots. Journal of the Operational Research Society 62(7): 1198-1210.
14. Rao S, Goldsby TJ, Griffis SE and Iyengar D (2011). Electronic logistics service quality (e-LSQ): Its impact on the customer's purchase satisfaction and retention. Journal of Business Logistics 32(2): 167-179.
15. Sakao T and Lindahl M (2009). Introduction to Product/Service-system Design. Springer: London.
16. Sarker BR, Rochanaluk R and Egbelu PJ (2013). Improving service rate for a tree-type three-echelon supply chain system with backorders at retailer's level. Journal of the Operational Research Society 65(1): 57-72.
17. Spengler JJ (1950). Vertical integration and antitrust policy. The Journal of Political Economy 58(4): 347-352.
18. Spinler S and Huchzermeier A (2006). The valuation of options on capacity with cost and demand uncertainty. European Journal of Operational Research 171(3): 915-934.
19. Srinivasan A and Kwon C (2012). Operations of online advertising services and publisher's option. Journal of the Operational Research Society 63(5): 674-682.
20. Tsay AA, Nahmias S and Agrawal N (1999). Modeling supply chain contracts: A review. In: Tayur S, Ganeshan R and Magazine M (eds). Quantitative Models for Supply Chain Management. Springer: New York, pp 299-336.
21. Wang X and Liu L (2007). Coordination in a retailer-led supply chain through option contract. International Journal of Production Economics 110(2007): 115-127.
22. Wang Q and Tsao DB (2006). Supply contract with bidirectional options: The buyer's perspective. International Journal of Production Economics 101(1): 30-52.
23. Weltevreden JW (2008). B2C e-commerce logistics: The rise of collection-and-delivery points in The Netherlands. International Journal of Retail & Distribution Management 36(8): 638-660.
24. Xu J, Hong L and Li Y (2011). Designing of collection and delivery point for e-commerce logistics. In: Proceedings of 2011 International Conference on Information Technology, Computer Engineering and Management Sciences, Vol. 3, IEEE; Nanjing, pp 349-352.
25. Yazdanifard R, Agodi T and Alizadeh S (2011). How unreliable delivery system affects e-marketing effectiveness. In: Proceedings of 2011 International Conference on Information Communication and Management, LACSIT Press, Singapore, pp 10-14.