Capacity decisions and supply price games under flexibility of backward integration

被引:21
作者
Wang, Li Ming [1 ]
Liu, Li Wen [1 ]
Wang, Yong He [1 ]
机构
[1] Tsinghua Univ, Sch Econ & Management, Room 215,Bldg 14, Beijing 100084, Peoples R China
基金
中国国家自然科学基金;
关键词
flexibility of backward integration; outsourcing; capacity; stackelberg game;
D O I
10.1016/j.ijpe.2007.02.011
中图分类号
T [工业技术];
学科分类号
08 ;
摘要
A key issue in supply chain design for manufacturing firms is how to make a trade-off between strategies of vertical integration and outsourcing. A two-echelon supply chain model with one supplier and one manufacturer is set up to study this issue. The manufacturer makes decisions on two types of capacities, one is core capacity that cannot be outsourced, the other is non-core capacity on which the manufacturer implements a strategy that includes three options-complete, partial or no outsourcing. Such a strategy is referred to as "flexibility of backward integration". Optimal capacity decisions of the manufacturer are given and the supplier's pricing strategies are discussed. Managerial implications of partial outsourcing are investigated. The impact of the flexibility of backward integration is presented and finally, supply chain coordination is analyzed. (C) 2007 Elsevier B.V. All rights reserved.
引用
收藏
页码:85 / 96
页数:12
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