Comparative study of two supply contracts' impact on manufacturer and supplier performances
Résumé
For a manufacturer, the order fulfilment process is triggered by the final customer demand. The manufacturer plans its productions, procurements and deliveries. The supply process is often constrained by long-term supply arrangements defined in framework agreements, containing terms which can deeply impact the partners' performance. On this evidence, the interest of this paper is to compare two different supply contracts. The first one called (Q/t) consists in committing to a certain quantity of components per time period t, whereas the other consists in committing to quantity per horizon of time, noted (Q/Hc). Both contracts are introduced and the issued constraints are formalized to be integrated in production planning model. The study then investigates by simulation the impact of both contracts on both partners: the manufacturer, noted OEM (Original Equipment Manufacturer) and its supplier. Simulations are carried out through telecom study case performed within the developed simulation platform. Computational results finally illustrate how the adoption of each contract can impact manufacturer and supplier's performances.