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With a push contract there is a single wholesale price and the retailer, by ordering his entire supply before the selling season, bears all of the supply chain’s inventory risk.

A pull contract also has a single wholesale price, but the supplier bears the supply chain’s inventory risk because only the supplier holds inventory while the retailer replenishes as needed during the season.

This research studies how the allocation of inventory risk (via these three types of wholesale price contracts) impacts supply chain efficiency (the ratio of the supply chain’s profit to its maximum profit).

With a push contract there is a single wholesale price and the retailer, by ordering his entire ..." While every firm in a supply chain bears supply risk (the cost of insufficient supply), some firms may, even with wholesale price contracts, completely avoid inventory risk (the cost of unsold inventory).

In other words, the literature has exaggerated the value of implementing coordinating contracts (i.e., contracts that achieve 100 % efficiency, such as buy-backs or revenue sharing) because coordinating "...

Assembly and kitting operations, as well as jointly sold products, are rather basic yet intriguingdecentralized supply chains, where achieving coordination through appropriate incentives is very important, especially when demand is uncertain.

We explore the resulting components ’ delivery quantities equilibrium in this decentralized supply chain and its implications for participants ’ and system’s expected profits.

We derive the revenue shares the assembler should select in order to maximize its own profits.

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