Abstract and Keywords
This article discusses how pricing terms in business-to-business (B2B) contracts can be used to align incentives, and to share risks, profits, and information between the members of a supply chain. It is organized as follows. Section 29.2 discusses how B2B contracts can be used to reallocate inventory risk in a supply chain. Section 29.3 investigates how a contract between a manufacturer and a retailer can affect the retailer's pricing decision. Section 29.4 discusses how B2B contracts can be used to allocate capacity risk. Section 29.5 studies how B2B contracts can be used to credibly share information. Section 29.6 discusses potential implementation issues. Section 29.7 concludes with a discussion on possible extensions and research opportunities.
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