In today's competitive markets, firms try to reduce their supply cost by selecting efficient suppliers using different techniques. Several methods can be applied to evaluate the efficiency of supplier base. This paper develops generalized network data envelopment analysis models to examine the efficiency of two-tier supplier bases under cooperative and non-cooperative strategies where each tier...

We consider a three level supply chain in which a Tier 2 supplier sells to a Tier 1 supplier, which in turn sells to a downstream (Tier 0) firm. The Tier 2 supplier potentially violates social and environmental standards, resulting in harm to the Tier 0 firm. Both the manufacturer and Tier 1 supplier can exert effort to improve the responsibility of the Tier 2 supplier. We show that the manufac...

A manufacturer must choose whether to delegate component procurement to her tier-1 supplier, or control it directly. Due to information asymmetry about suppliers’ production costs and the use of simple quantity discount or price-only contracts, either delegation or control can yield substantially higher expected profit for the manufacturer. Delegation tends to outperform control when (1) the ma...

There is extensive research examining the benefits of relational and transactional governance in buyer-supplier relations. Research on the implementation of, or evolution in, these governance modes however is lacking. In this paper we present the results of a longitudinal case study of the governance choices of Nissan and its suppliers over an eight year period after Nissan’s merger with Renaul...

This paper studies the price-quoting strategies used by a tier-two supplier, whose tier-one customers compete for an OEM’s indivisible contract. At most one of the tier-two supplier’s quotes will ultimately result in downstream contracting and hence produce revenue for her. We characterize the tier-two supplier’s optimal price-quoting strategies and show that she will use one of two possible ty...

The automotive sector operates under the just-in-time (JIT) approach, but variations in demand mean that first-tier suppliers generate an accumulation of stocks at second-tier suppliers. Second-tier have a limitation storage space, reason to limit their production size warehouse, always attending plan. A further supplier is number empty reusable containers delivers and are used package injected...

Specific supply-chain investments are vital in achieving faster lead-time performance and more competitive costs. In practice, such as in the highly leveraged telecom sector, the coordinating original equipment manufacturers (OEM) often delegate the upstream coordination of suppliers to contract manufacturers. This can be justified by informational advantages or economies of scale. However, the...

In this paper, we study the role of capacity on the efficiency of a two-tier supply chain with two suppliers (leaders, first tier) and one retailer (follower, second tier). The suppliers compete via pricing (Bertrand competition) and, as one would expect in practice, are faced with production capacity. We consider a model with differentiated substitutable products where the suppliers are symmet...

A manufacturer must choose to delegate component procurement to its tier-1 supplier, or to control component procurement by contracting with both the tier-1 supplier and the tier-2 component supplier. Both suppliers have private cost information and the manufacturer has an alternative source of supply with cost known to all parties. This paper proves that if the firms may use arbitrarily comple...