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13 Cards in this Set
- Front
- Back
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Risk Sharing
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The contract enables them to share the risks so that the buyer will buy more and the supplier can sell more. --MTO
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Buy-back contract
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Seller agrees to buy back unsold goods from the buyer for some agreed-upon price--MTO
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Revenue Sharing Contract
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Buyer shares some of its revenue with the supplier in return for a discount on the wholesale price--MTO
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Quantity-Flexibility Contracts
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Supplier provides full refund for returned (unsold) items, as long as the number of returns isn't larger than a certain quantity.--MTO
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Sales Rebate Contracts
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Provides a direct incentive to the retailer to increase sales by a means of a rebate paid by the supplier for any item sold above a certain quantity--MTO
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Pay-Back Contract
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Buyer agrees to pay some agreed-upon price for any unit produced by the manufacturer but not purchased--MTS
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Cost-Sharing Contract
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Buyer shares some of the production costs with the manufacturer, in return for a discount on the wholesale price--MTS
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Capacity-Reservation Contract
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Buyer pays to reserve a certain level of capacity at the supplier. A menu of prices for different capacities is provided by the supplier, and the buyer signals their true forecast by reserving a specific capacity--MTS
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Advance Purchase Contract
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Supplier charges a special price before building capacity, and when the demand is realized, the price charged is different--MTS
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Long-Term Contracts
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Contracts specify a fixed amount of supply to be delivered at some point in the future--MTS
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Flexible/Open contracts
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Buyer pre-pays a relatively small fraction of the product price up-front, supplier commits to reserve capacity up to a certain level.--MTS
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Sport Purchase
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Buyers look for additional supply in the open market--MTS
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Portfolio contracts
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Buyer signs multiple contracts at the same time.--MTS
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