Sourcing from emerging economies may yield direct cost savings, but companies often face greater risk of supplier responsibility problems due to many factors, with lax regulatory enforcement in these regions being one of them. Intuitively, to mitigate such risks, companies can design incentive schemes in sourcing contracts and invest in screening mechanisms for supplier sourcing. However, the r...

We consider a model of bribery in an asymmetric procurement auction. In return for a bribe from the dishonest supplier, the auctioneer has the discretion to allow this supplier to revise his bid downward to match the low bid of the honest supplier. The dishonest supplier can also win the contract outright without paying a bribe by bidding below the honest supplier. We investigate the effect of ...

there are many benefits for coordination of multiple suppliers when single supplier cannot satisfy buyer demands.  in addition, buyer needs to purchase multiple items in a real supply chain. so, a model that satisfies these requests has many advantages. we extend the existing approaches in the literature that assume all suppliers need to be put on a common replenishment cycle and each supplier ...

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 a buyer-supplier game, a distinguished player, called the buyer, wishes to purchase some combinatorial object. A set of players, called suppliers, offer pieces of the object for sale. In this paper, we provide a transformation from most combinatorial minimization problems to buyer-supplier games; a characterization of the core of buyer-supplier games in the transferable and non-transferable ...

  Most supplier selection models consider the buyer’s viewpoint and maximize only the buyer’s profit. This does not necessarily lead to an optimal situation for all the members of a supply chain. Coordination models have been developed to optimize the entire supply chain and align the decisions between its entities. Little research has been done on the application of these models in the supplie...

  This article investigates integrated production-inventory models with backorder. A single supplier and a single buyer are considered and shortage as backorder is allowed for the buyer. The proposed models determine optimal order quantity, optimal backorder quantity and optimal number of deliveries on the joint total cost for both buyer and supplier. Two cases are discussed: single-setup-singl...

Business clusters and global value chains (GVCs) command growing interest in some research disciplines. In the existing literature overwhelmingly focus on two niches: governance and upgrading. The detailed mechanisms of buyer-supplier relationship management tend to remain under-researched. This paper presents a framework base on the literature on the literature of International Marketing and P...

We study the decision of a manufacturer (buyer), expecting new sourcing opportunities in the future, to select between a sole and a second sourcing mechanism for a non-commodity component. In a sole sourcing mechanism, the buyer commits to source from the current supplier. In a second sourcing mechanism, the buyer keeps the option open to source from a new supplier in the future. For a buyer th...