Capacity competition under Vendor's cost uncertainties

Description

This paper models a supply chain with two vendors and a client firm. In this model, the vendors facing production cost uncertainties simultaneously make capacity investment decisions while the client sources capacity from these two competing vendors. Our paper characterizes the Nash equilibrium strategies of this competition.

Publication Date

1-1-2018

Keywords

Vendor costs, Operational issues, Sourcing

Conference

POMS 29th Annual Conference, 4-7 May, 2018, Houston, USA

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