{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,2,20]],"date-time":"2026-02-20T04:19:42Z","timestamp":1771561182700,"version":"3.50.1"},"reference-count":37,"publisher":"Wiley","issue":"1","license":[{"start":{"date-parts":[[2014,1,29]],"date-time":"2014-01-29T00:00:00Z","timestamp":1390953600000},"content-version":"vor","delay-in-days":0,"URL":"http:\/\/onlinelibrary.wiley.com\/termsAndConditions#vor"}],"content-domain":{"domain":["onlinelibrary.wiley.com"],"crossmark-restriction":true},"short-container-title":["Decision Sciences"],"published-print":{"date-parts":[[2014,2]]},"abstract":"<jats:title>ABSTRACT<\/jats:title><jats:p>We design a new contract, which we refer to as the QF<jats:italic>i<\/jats:italic> contract, that combines the quantity flexibility (QF) mechanism and the price\u2010only discount incentive. Under the QF contract, the buyer does not assume full responsibility for the forecast, yet the supplier guarantees the availability of the forecasted quantity and extra buffer inventory. In contrast, the price\u2010only discount contract places full inventory burden on the buyer. We show that the proposed QF<jats:italic>i<\/jats:italic> contract effectively balances the inventory risk for both the buyer and the supplier considering both the QF and discount mechanisms. We also show that the QF<jats:italic>i<\/jats:italic> contract is able to achieve supply chain coordination. More importantly, the QF<jats:italic>i<\/jats:italic> contract's coordinating price scheme does not require knowledge of demand distribution. We identify areas where the buyer and supplier may both benefit from implementing the QF<jats:italic>i<\/jats:italic> contract as opposed to the extant QF or price\u2010only (wholesale) discount contractual decisions in a decentralized supply chain. We also specify the conditions under which supply chain coordination can be achieved in a win\u2010win manner. We conclude with managerial implications and provide directions for future research.<\/jats:p>","DOI":"10.1111\/deci.12058","type":"journal-article","created":{"date-parts":[[2014,1,29]],"date-time":"2014-01-29T09:39:42Z","timestamp":1390988382000},"page":"49-79","update-policy":"https:\/\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":29,"title":["Quantity Flexibility Contract in the Presence of Discount Incentive"],"prefix":"10.1111","volume":"45","author":[{"given":"Wenming","family":"Chung","sequence":"first","affiliation":[{"name":"Marketing and Management Department College of Business University of Texas at El Paso, 500 West University Avenue  El Paso TX 79968"}]},{"given":"Srinivas","family":"Talluri","sequence":"additional","affiliation":[{"name":"Department of Supply Chain Management Eli Broad Graduate School of Management N370 Business Complex, Michigan State University  East Lansing MI 48824"}]},{"given":"Ram","family":"Narasimhan","sequence":"additional","affiliation":[{"name":"Department of Supply Chain Management Eli Broad Graduate School of Management N370 Business Complex, Michigan State University  East Lansing MI 48824"}]}],"member":"311","published-online":{"date-parts":[[2014,1,29]]},"reference":[{"key":"e_1_2_9_2_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1070.0829"},{"key":"e_1_2_9_3_1","doi-asserted-by":"publisher","DOI":"10.1287\/msom.4.3.171.7754"},{"key":"e_1_2_9_4_1","doi-asserted-by":"publisher","DOI":"10.1080\/07408179708966342"},{"key":"e_1_2_9_5_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1040.0218"},{"key":"e_1_2_9_6_1","doi-asserted-by":"publisher","DOI":"10.1016\/S0927-0507(03)11006-7"},{"key":"e_1_2_9_7_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1030.0190"},{"key":"e_1_2_9_8_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1040.0215"},{"key":"e_1_2_9_9_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1070.0716"},{"key":"e_1_2_9_10_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.46.3.444.12065"},{"key":"e_1_2_9_11_1","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-5915.1994.tb00521.x"},{"key":"e_1_2_9_12_1","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-5915.2010.00283.x"},{"key":"e_1_2_9_13_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.46.11.1397.12088"},{"key":"e_1_2_9_14_1","doi-asserted-by":"publisher","DOI":"10.1287\/msom.1070.0151"},{"key":"e_1_2_9_15_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1050.0471"},{"key":"e_1_2_9_16_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.43.11.1469"},{"issue":"2","key":"e_1_2_9_17_1","first-page":"83","article-title":"Making supply meet demand in an uncertain world","volume":"72","author":"Fisher M. 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