Procurement model under suppliers' capacity investments and competition
Description
In this research, we consider a supply chain where two suppliers first compete to win a contract from a buyer. The supplies also have individual alternate markets to sell capacity. Production costs of suppliers are private information. The winner of the contract invests in capacity for the buyer as well as his alternate market. The other supplier only invests to serve his alternate market. We determine buyers' optimal sourcing strategy and the supplier's capacity decisions under such a scenario.
Copyright Date
January 2016
Publication Date
1-1-2016
Pagination
905-909p.
DOI
10.1109/IEEM.2015.7385779
ISBN
978-1467380669||978-1467380652
Publisher
IEEE Computer Society
Keywords
Buyer-Supplier Relationships, Capacity Investment, Sourcing
Conference
2015 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM): 6-9 December, 2015, Singapore