Dynamic order forecast sharing with dual shipping options under quantity flexibility contract

• Published in: International journal of production research Vol. 63; no. 15; pp. 5782 - 5811
• Main Authors: Shuyang, Zhang, Yashu, Yao, Jiazhen, Huo
• Format: Journal Article
• Language: English
• Published: Taylor & Francis 03.08.2025
• Subjects: dual shipping options; forecast evolution; Quantity flexibility contract; rolling-horizon planning; stochastic dual dynamic programming

We study how a manufacturer shares demand information with its supplier under an important class of supply contracts known as quantity flexibility (QF) contract. In this article, we assume a manufacturer, facing evolving demand forecasts, needs to share the order forecasts to the supplier in a rolli...