Abstract
We study a model with a single supplier and a single buyer who interact multiple times before the buyer sells her product in the end-consumer market. We show that when the supplier uses a wholesale price contract, even under perfect foresight, the supplier, the buyer, and the end-consumers benefit from multiple trading opportunities versus a one-shot procurement agreement.
A significant part of the materials in this invited chapter is from the following original article: Erhun F, Keskinocak P, Tayur S (2008) Dynamic procurement, quantity discounts, and supply chain efficiency. Prod Oper Manage 17(5):1–8.
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Acknowledgements
The first author was partially supported by NSF Award DMI-0400345 and the second author was supported by NSF Career Award DMII-0093844. The authors would like to express their deepest gratitude to two anonymous reviewers for their constructive comments and suggestions.
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Erhun, F., Keskinocak, P., Tayur, S. (2011). Dynamic Procurement, Quantity Discounts, and Supply Chain Efficiency. In: Choi, TM., Cheng, T. (eds) Supply Chain Coordination under Uncertainty. International Handbooks on Information Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-19257-9_9
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DOI: https://doi.org/10.1007/978-3-642-19257-9_9
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