Lin, Zhibing; Cai, Chen; Xu, Baoguang - In: European Journal of Operational Research 205 (2010) 2, pp. 339-345
We propose an insurance contract under which the supplier shares the risk of overstock and understock with the retailer, improving the efficiency of the supply chain with a newsvendor-type product. We first show that the insurance contract could coordinate the supply chain, and obtain bargaining...
