The Infona portal uses cookies, i.e. strings of text saved by a browser on the user's device. The portal can access those files and use them to remember the user's data, such as their chosen settings (screen view, interface language, etc.), or their login data. By using the Infona portal the user accepts automatic saving and using this information for portal operation purposes. More information on the subject can be found in the Privacy Policy and Terms of Service. By closing this window the user confirms that they have read the information on cookie usage, and they accept the privacy policy and the way cookies are used by the portal. You can change the cookie settings in your browser.
We address the problem of coordinating the capacity decisions of two autonomous manufacturers engaged in a buyer–supplier relationship. We propose and analyze a supply contract designed to coordinate the companies׳ single period capacities so that both parties end up better off than they would by trading solely through the market. The setting is frequently found in supply chains, as the contract does...