We develop an integrated, multi-period model of the optimal number of suppliers that combines considerations from search and coordination theory, transaction cost economics, and incomplete contracts theory. We assess our theoretical predictions using a new dataset on the global IT sourcing decisions of 1355 firms in 12 countries collected using a survey that we specifically designed to test our...

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We study the effectiveness of a procurement mechanism of a buyer that bundles the product procurement with the technology acquisition. We analyze the bidding behavior of rational suppliers and predict the outcome of such a bundling strategy. Using the two-supplier case, we find that each supplier has a dominant bidding strategy for the technology provision that is independent from the bidding s...

In seeking to understand relationships between smaller suppliers and larger customers, there is a growing interest in examining the characteristics of asymmetry in relationships. However, there is a paucity of research that looks at the consequences of size asymmetry for smaller suppliers. Building on IMP (Industrial Marketing and Purchasing Group) research, this paper presents a typology for a...

Employing more than one supplier and splitting orders between them is a strategy employed in supply chains to lessen the lead-time risk in unstable environments. In this paper we present a multiple-sourcing inventory system with stochastic lead-times and constant demand controlled by a continuous review, reorder point-order quantity inventory policy. We consider the situation in which the order...

Affected by globalization and increased complexity, supply chain managers have learned about the importance of Sales and Operations Planning (S&OP). However, in large scale supply chains, S&OP has received little attention, by both academics and practitioners. The purpose of this manuscript is to investigate the advantages of S&OP process using a mathematical modeling approach in a large scale ...

In a procurement setting, this paper examines agreements between a buyer and one of the suppliers which would increase their joint surplus. The provisions of such agreements depend on the buyer’s ability to design the rules of the final procurement auction. When the buyer has no such ability, their joint surplus can be increased by an agreement which grants to the preferred supplier a right-of-...