An analytical comparison of long and short term contracts

被引:32
作者
Cohen, MA [1 ]
Agrawal, N
机构
[1] Univ Penn, Wharton Sch, Dept Operat & Informat Management, Philadelphia, PA 19104 USA
[2] Santa Clara Univ, Dept Operat & Management Informat Syst, Santa Clara, CA 95053 USA
关键词
D O I
10.1080/07408179908969877
中图分类号
T [工业技术];
学科分类号
08 ;
摘要
In this paper, we describe an analytical model to determine contracting policies for a firm that purchases components from external suppliers. The model evaluates the tradeoff between the flexibility offered by short term contracts and the fixed investments, improvement opportunities and price certainty associated with long term contracts. We show that long term contracts may not always be optimal, and discuss conditions under which short term contracts may be justified. During a recent survey of supply managers, we observed that managers often tend to participate in short term contracts, even though they claim to seek long term relationships with suppliers. Sensitivity analysis of our model provides some explanation for this observed inconsistency. We also discuss managerial implications of the analysis.
引用
收藏
页码:783 / 796
页数:14
相关论文
共 31 条
[1]  
AGRAWAL N, 1999, OPTIMAL MAT CONTROL
[2]  
[Anonymous], 1994, Strategic industrial sourcing: The Japanese advantage
[3]  
BASSOK Y, 1994, ANAL SUPPLY CONTRACT
[4]  
BASSOK Y, 1995, ANAL SUPPLY CONTRACT
[5]  
Blackburn J. D., 1991, Time-based competition: the next battleground in American manufacturing
[6]   The Nature of the Firm [J].
Coase, R. H. .
ECONOMICA-NEW SERIES, 1937, 4 (16) :386-405
[7]  
COHEN MA, 1996, EMPIRICAL INVESTIGAT
[8]  
Cox J.C., 1985, Options Markets
[9]  
Dixit K., 1994, INVESTMENT UNCERTAIN
[10]  
DONOHUE KL, 1996, SUPPLY CONTRACTS FAS