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The evidence base for the configuration of rolling horizon flexibility (RHF) contracts (a type of quantity flexibility contract) used in the semiconductor industry to coordinate production and demand remains meagre, more art than science. Informed by the characteristics of actual clauses and demand behaviors drawn from a company’s experience, a discrete-event simulation model is developed to represent...
The purpose of this paper is to evaluate an option contract within a semiconductor supply chain consisting of one semiconductor manufacturer and one customer. In an option contract the customer pays an upfront fee (option price) for an option to purchase product. A simulation model is used to compare the performance of an option contract against a standard supply contract used in a semiconductor supply...
Semiconductor manufacturers face high demand uncertainty due to volatile and rapidly changing technology development as well as inaccurate customer forecasts. The paper first presents a description of contract clauses used in semiconductor supply chains, obtained through a literature review and a field study. The paper then presents a review of the literature on studies in supply chain contracts focusing...
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