Procurement Contract Design for Electronic Information Manufacturing Enterprises Considering Interruption Risks
To mitigate the impact of supply disruptions on the production and supply chain performance of an electronic information manufacturing enterprise,a procurement contract aiming at a two-echelon supply chain which is composed of several suppliers and the electronic information manufacturing enterprise considering the presence of potential disruption risks and its suppliers'effort levels with information asymmetry is designed by employing the information screening model.The results indicate the procurement contract considering disruption risks can effectively discern private information about suppliers'service capabilities and accommodate to different supply chain environment and market conditions in a flexible manner,helping better prioritize the suppliers with stronger capabilities to handle disruption risks.Furthermore,the electronic information manufacturing enterprise will moderately reduce the procurement prices and provide additional production subsidies to its suppliers with stronger abilities to handle disruption risks when the procurement costs are increased by the market fluctuations.All these approaches thereby make the incentive contract more accurate and effective.
disruption riskelectronic information manufacturing enterpriseinformation screening modelsupplier selectionprocurement contract