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.
Copyright Date
January 2018
Publication Date
1-1-2018
Keywords
Vendor costs, Operational issues, Sourcing
Conference
POMS 29th Annual Conference, 4-7 May, 2018, Houston, USA
COinS