We study how supply risk, fixed supplier costs, financial constraints, and the dual role played by the suppliers as the providers of parts and the financiers of the manufacturer affect the relationship among firms in a supply chain, supplier selection, and supply chain performance. Using a one-period model, we consider joint procurement and financing decisions of a firm with limited financial c...

In this article, we develop an integrated supplier–buyer inventory model with the assumption that the market demand is sensitive to the retail price and the supplier adopts a trade credit policy. The trade credit policy discussed in this paper is a ‘‘two-part’’ strategy: cash discount and delayed payment. That is, if the buyer pays within M1, the buyer receives a cash discount; otherwise, the f...

Final quality of products/services starts with suppliers in the supply chain. Problems can occur if suppliers do not deliver the quantities requested in full, on time, or buyers select suppliers solely on the basis of lowest price. Supplier selection has been studied for large businesses but not for very small (micro) businesses. Therefore, a survey was administered to micro-businesses to deter...

a r t i c l e i n f o This study investigates the extent to which strong relationships between a firm and its key suppliers promote effective new product introduction. Building on the relationship marketing literature, we identify self-enforcement and interdependence as two contingent relational variables that influence the strength of the buyer–supplier relationship. We use data from a survey ...

Over the past 10 to 15 years, the conventional wisdom within the purchasing and supply field has been that the development of collaborative relationships represents best practice purchasing and supply management. It is the contention of the authors, however, that this view is misguided and that managers need to adopt a fit-for purpose approach. For some purchases, a collaborative relationship i...

While cooperative buyer-supplier relations are an important source of sustainable competitive advantage, non-cooperative behavior persists widely. This paper tests a model incorporating non-cooperative behavior within a context of formal commitment, using data from the US auto industry. This ‘close, but adversarial’ model appears to be reasonably well supported by the data, suggesting that even...