An evaluation of an option contract in semiconductor supply chains

Author

Knoblich, K. ; Heavey, Cathal ; Williams, Prince

Author_Institution

Infineon Technol. AG, Neubiberg, Germany

fYear

2012

fDate

9-12 Dec. 2012

Firstpage

1

Lastpage

10

Abstract

The purpose of this paper is to evaluate an option contract within a semiconductor supply chain consisting of one semiconductor manufacturer and one customer. In an option contract the customer pays an upfront fee (option price) for an option to purchase product. A simulation model is used to compare the performance of an option contract against a standard supply contract used in a semiconductor supply chain in terms of delivery performance and costs for the supply chain partners.

Keywords

contracts; modelling; pricing; purchasing; semiconductor device manufacture; simulation; supply chain management; delivery costs; delivery performance; option contract; option price; purchase product; semiconductor manufacturer; semiconductor supply chains; simulation model; standard supply contract; supply chain partners; upfront fee; Contracts; Predictive models; Semiconductor device measurement; Semiconductor device modeling; Standards; Supply chains;

fLanguage

English

Publisher

ieee

Conference_Titel

Simulation Conference (WSC), Proceedings of the 2012 Winter

Conference_Location

Berlin

ISSN

0891-7736

Print_ISBN

978-1-4673-4779-2

Electronic_ISBN

0891-7736

Type

conf

DOI

10.1109/WSC.2012.6465315

Filename

6465315