Designing Supply Chain Contracts by Means of Aggregate Models

Kremer, Mirko ; Schneeweiß, Christoph

Document Type: Working paper
Year of publication: 2005
The title of a journal, publication series: Technical Report / Universität Mannheim, Lehrstuhl für ABWL und Logistik
Volume: 05-05
Place of publication: Mannheim
Publication language: English
Institution: Business School > ABWL u. Logistik (Minner -2008)
Subject: 330 Economics
Abstract: The vast majority of the existing papers on supply chain c ontracts analyse these contracts based on a highly aggregate model description of the supply chain. Recognizing t he high complexity of real (supply chain) sys- tems, such models can naturally only be rough approximations of reality. We explore the aggregation error made when using an aggregate model in order to optimize a supply chain contract which is subsequently applied to a more detailed (real) system. Based on a numerical anal ysis it is shown that the design of supply chain contract s by means of an aggregate planning model may lead to significant suboptimalities.

Dieser Eintrag ist Teil der Universitätsbibliographie.

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