As suppliers provide more value in today’s supply chains, eliciting supplier cost-reduction efforts and inducing supplier competition are two important levers for a buyer to reduce sourcing costs. In this paper, we study a buyer’s sourcing strategy considering supplier effort and competition. The buyer has two instruments in her strategy: the composition of the supply base and the contracting m...

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Cooperative Information Systems implement cross-organization processes by exchanging information among each other in a mutual supplier--customer relationship. With respect to the quality of the information received, each customer system has requirements that must be met by its supplier systems. In this paper, we model the quality profile associated to a supplier as a multidimensional data cube,...

In any manufacturing industry 60% 70% of total cost of product pertains raw materials cost. Therefore selec material supplier is very significant factor to improve quality of product as well as reducing total cost. Supplier selection considers various factors and numerous alternatives. However it is conflicting various choices. The proposed multi criteria group decision making problem paves sel...

We study a practice whereby a downstream firm makes to his supplier a premium-payment for a certain quantity of products. We show that the adoption of this practice can induce the supplier to build bigger capacity. The higher capacity level enables the supplier to satisfy a larger portion of demands from the downstream firm, and this leads to higher payoffs for both parties in the supply chain....

Suppliers have become resources for innovation and competitive advantages. To realize those potentials specific competencies have to be developed in a partnership between customer and supplier. The success of those development projects and also the effort that has to be put in depend on several factors. One of those factors is the motivation of the supplier organization. An empirical study show...

The supplier and buyers, with different objectives and self-interest, are separate economic entities acting independently and opportunistically to maximize their individual profits. In this paper, a GBA model in the B2B market is studied, where one supplier faces 2 different retailers, who cooperate in the order decision making. Firstly, the optimal ordering decision of the retailers was analyz...

We consider supplier development within a supply chain consisting of a single manufacturer and a single supplier. Because investments in supplier development are usually relationship-specific, safeguard mechanisms against the hazards of partner opportunism have to be installed. Here, formal contracts are considered as the primary measure to safeguard investments. However, formal contracts entai...

An empirical study was designed to determine factors of performance improvement when outsourcing manufacturing. Findings from a survey of 136 manufacturing plants in Sweden show that most of them achieve their outsourcing motives, but not without tradeoffs. Factors of performance improvements such as economies of scale or operations in low-cost countries can improve one performance dimension, s...

Supplier evaluation and selection, an important element in supplier-based manufacturing and supply chain management has been gaining attention in both academic literature and industrial practice. In this paper, we presented a modified data envelopment analysis (DEA) method for supplier selection which can operate under conditions of imprecise information. A brief description of the importance o...