Operations Management-In this chapter we discussed two classes of supply contracts

In this chapter we discussed two classes of supply contracts for strategic components, one of which is appropriate when the manufacturer manufacturers goods after the distributor orders them, but the distributor orders before he observes demand, while the other is appropriate when the manufactures goods before the distributor orders them, but the distributor orders after he observes demand. Discuses another possible situation and describe how supply contracts might be beneficial to the supply chain in this new situation.