De waarde van informatie - Information sharing and incentives
3 important questions on De waarde van informatie - Information sharing and incentives
Which two contracts provide incentives for the buyers to reveal their true forecasts?
- Capacity reservation contracts
- Advance purchase contracts
What are capacity reservation contracts?
In capacity reservation contracts provides the company the supplier with a menu specifying different level of capacities he is willing to build and the corresponding price for each one.
What are advance purchase contracts?
In advance purchase contracts charges the contract manufacturer an advance purchase price for orders placed prior to building capacity and a different (higher) price for any additional order placed when demand is realized.
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