Penalty and financial assistance in a supply chain with supply disruption
Abstract
In a supply chain, when the supply is hit by an unexpected disruption, the supplier may face certain financial difficulty to resume normal production, causing a supply shortage as well as a loss to the manufacturer and the entire supply chain. Combining a penalty term in writing contracts with the provision of financial assistance is the “carrot and stick” approach used by a manufacturer to deal with supply disruption. This article investigates...
Paper Details
Title
Penalty and financial assistance in a supply chain with supply disruption
Published Date
Jun 1, 2016
Journal
Volume
61
Pages
167 - 181
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