Please use this identifier to cite or link to this item: https://doi.org/10.1016/S0377-2217(99)00445-2
Title: Analysis of supply contracts with minimum total order quantity commitments and non-stationary demands
Authors: Chen, F.Y. 
Krass, D.
Keywords: Inventory models
Procurement management
Purchasing
Supply contracts
Issue Date: 2001
Source: Chen, F.Y., Krass, D. (2001). Analysis of supply contracts with minimum total order quantity commitments and non-stationary demands. European Journal of Operational Research 131 (2) : 309-323. ScholarBank@NUS Repository. https://doi.org/10.1016/S0377-2217(99)00445-2
Abstract: In this paper we address a buyer-supplier arrangement of particular importance: total order quantity commitment (TOQC). Under the TOQC contract that has been negotiated between the buyer and the supplier, the former agrees to an obligation to procure a certain quantity of an item from the latter over the predetermined period of time (additional quantity can be obtained maybe at a different price). The optimal inventory replenishment policy is shown to be dual order-up-to levels under a given TOQC, and the optimal TOQC is also demonstrated to be mathematically straightforward to obtain. © 2001 Elsevier Science B.V.
Source Title: European Journal of Operational Research
URI: http://scholarbank.nus.edu.sg/handle/10635/44925
ISSN: 03772217
DOI: 10.1016/S0377-2217(99)00445-2
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