Comparison on global supply chain purchasing strategies based on supply contracts

In the global supply chain in a setting characterized by exchange rate uncertainties,it is quite necessary to focus on comparative research trying to find out which kind of purchasing strategy is better in different situations.The two common global purchasing strategies,risk sharing(RS)and quantity flexibility(QF),are selected to be compared.Using a real-options approach,the valuation models of RS and QF purchasing contracts are established.By means of binomial lattice technique,numerical simulation and sensitivity analysis of two stochastic dynamic programs are presented.The effects on expected discounted value by changing relative parameters are described clearly.Based on comparative analysis,it is concluded that the QF purchasing strategy is better than that of the RS especially where great volatility exists for exchange rate processes in the global supply chain.

Supply contract for Nantong Power Plant Phase II signed

Power generating equipment supply contract for Huaneng Nantong Power Plant Phase Ⅱ project affiliated to Huaneng International Electric Power Stock Company Ltd. was signed at the People’s Great Hall on June 28, 1996, Shi Dazhen, Minister of Electric Power, Ye Qing, Vice-chairman of the State Planning Commission, Zhang Youcai, Vice Minister of Finance and

E-Supply Chain Incentive and Coordination Based on Revenue Sharing Contract

This paper took the buyer-biased electronic market as an example, where multiple suppliers selling short-life-cycle products are bidding for an order from a powerful buyer with stochastic customer demand. It used a single period newsvendor model to analyze the decision of supplied and buyers to do or not do business online. The results suggest that lack of Incentive is the key factor of B2B electronic markets failure. At the same time, it designed a revenue sharing contract to coordinate the E-supply chain in order to prevent failure of E-market.

Australia Won First Contract to Supply LPG to China

China National Offshore Oil Corp.(CNOOC)declared on August 8, 2002 that Australia Liquefied Natural Gas Company (ALNG) affiliated to Woodside Petroleum Corporation has been accepted as the supplier of LNG (liquefied natural gas) for its LNG distribution station in Guangdong Province.

Supply Chain Coordination of Loss-Averse Newsvendor with Contract

This paper studies a supply chain model in which a single supplier sells a single product to a single retailer who faces the newsvendor problem. The retailer is loss averse. The results show that the op- timal production quantity with decentralized decision making with a wholesale price contract is less than that with centralized decision making. The supply chain can achieve channel coordination with buy back and tar- get rebate contracts. With buy back contracts, the supply chain system profits can be allocated arbitrarily between the supplier and retailer. A new kind of contract, the incremental buy back contract, gives similar results as with the buy back contract. The advantages and drawbacks of these three types of contracts are analyzed with numerical examples.

Reference of New Zealand’s Drug Shortage Management Measures

Objective To provide a scientific reference for China’s drug shortage and supply mechanism by conducting a specific study on New Zealand’s management measures for dealing with the shortage of drugs.Methods Through reviewing the official website of the New Zealand Pharmaceutical Management Agency(PHARMAC)and relevant literature,the specific measures to deal with drug supply and shortage in New Zealand were sorted out,and then some countermeasures were put forward for our domestic drug supply.Results and Conclusion PHARMAC worked closely with the pharmaceutical suppliers and signed contracts to maintain their relationship.A sound drug supply mechanism has been established to respond to various supply issues.At present,there are some problems in drug supply in China,such as the lack of timely publicity of shortage information,the lack of management team for supply,and the lack of alternative drug supply mechanism.China should learn from the PHARMAC to establish a supply contract management team to promote the transparency of drug shortage information and seek alternative drug supply actively.

The Supply Chain Contract Design under Cap-and-Trade Mechanism with Free Riding

This paper studies the influence of free riding on enterprise product pricing and carbon emissions reduction investment, as well as the contract design to achieve supply chain coordination under the carbon trading mechanism. First, we discuss the situation where carbon emissions reduction investment affects the product price and income. It demonstrates that the optimal investment of the upstream manufacturer increases with the degree of the free riding of the downstream manufacturer. The upstream manufacturer can improve their carbon reduction investment and the whole supply chain achieves Pareto improvement when the investment cost sharing contract is introduced. Nevertheless, under the cost-sharing contract the optimal investment of the decentralized supply chain is still lower than that of the centralized supply chain, and only in some particular cases can the two types of supply chain achieve equal total profits. Then, we preliminarily explore the situation where the product price and income is influenced by carbon emissions reduction investment. The consequences indicate that the optimal investment of the upstream manufacturers in this situation is less than the former one's, and the transfer payment mechanism is able to improve the level of the supply chain overall carbon emissions-reduction. Moreover, compared to the former situation, the effects of free riding of the downstream manufacturer are even more serious. The conclusions can provide some intellectual support for manufacturing enterprises to make reasonable emissions reduction strategies and coordinate the supply chain existing in free riding.

Benefits for the bunker industry in adopting blockchain technology for dispute resolution

he bunker industry has faced negative perception to their trust and credibility in recent times.This is further compounded by the need for the industry to answer new challenges to meet the requirement of the International Maritime Organization 2020.The aim of this work is to illustrate how blockchain technology may be adopted for aiding in bunker dispute resolution.To demonstrate how blockchain may aid in disputes within the bunker industry,this paper first examines the existing bunker supply process,which involves the formation of contracts under English law,the Bunker Delivery Notes,the different types of disputes that may arise during a bunker transaction and the methods of dispute resolution utilised by the industry.Furthermore,the current literature in relation to blockchain technology and blockchain smart contracts is examined.Finally,interviews and surveys within the industry have been conducted to identify the benefits and challenges in adopting blockchain technology.The research found that blockchains may benefit the bunker supply chain offering the effective resolution of bunker quality disputes.Furthermore,blockchains may also serve as a verification tool for electronic bunker delivery notes,which may aid quality and quantity bunker disputes as well as compliance with the new International Maritime Organisation 2020 requirements.As a result,despite the research having shown blockchain to be situationally dependent and having an element of legal uncertainty,blockchain does offer a solution to aid in bunker disputes and for improving the trust and credibility within the bunker industry.