Bosc Environment Procurement Contract Research

With economic globalization and the development of social technologies, enterprises are facing increasing competitive pressures. Individual needs and uncertainty intensified, increasingly shorter product life cycles, make the market risk increased. Supply chain management emergence and developed in this context and got a great success in business. Then, Supply chain management becomes a hot spot of innovation of the theory research and management practices. BOSC (build to order supply chain) focus on customer demand, solves the problems of time, efficiency and cost. BOSC is hailed as the development mainstream of supply chain management.In this paper, we taking the non-standard parts procurement of BOSC environment as the background, develop a general cooperation contract model, a benefit-sharing contract model, a flexibility contract model of general cooperation, and a lead time flexibility contract model of benefit-sharing cooperation in a two-stage supply. We discuss and analysis the four different types of contracts. We take the modularity of components and conservative profit of both manufacture and supplier to stop trading into account.The main contents include:1) develop a general cooperation contract model and a benefit-sharing contract model with Supply chain modeling method, compare the two models and analysis of some parameters on the impact of decisions. The results show that the benefit-sharing contract model better than the general cooperation contract model and the advantage of the benefit-sharing contract model is going to be more obvious if the demand is more sensitive to the lead time.2) Develop a lead time flexibility contract model of general cooperation, and a lead time flexibility contract model of benefit-sharing cooperation, compare the two models and analysis of some parameters on the impact of decisions. The results show that the lead time flexibility contracts better than non-flexible contract, and increased product pricing-lead time motivation parameter can shorten the lead time in the best decisions, but the incentive effect will gradually decrease.