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Problem definition: We consider opportunities for cooperation at the supply level between two firms that are rivals in the end-product market. One of our firms is vertically integrated (VI), has in-house production capabilities, and may also supply its rival. The other is a downstream...
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This paper studies the optimal component procurement strategies of two competing OEMs selling substitutable products … supplier. Each OEM may either directly procure the input from the component supplier, or delegate the procurement task to the … contract manufacturer. We first analyze the OEMs' procurement game under a non-strategic supplier whose component price is …
Persistent link: https://www.econbiz.de/10013003583
This paper explores the merits of hedging stochastic input costs (i.e., reducing the risk of adverse changes in costs) in a decentralized, risk neutral supply chain. Specifically, we consider a generalized version of the well-known ‘selling-to-the-newsvendor' model in which both the up-stream...
Persistent link: https://www.econbiz.de/10013025709
Problem definition: We consider opportunities for cooperation at the supply level between two firms that are rivals in the end-product market. One of our firms is vertically integrated (VI), has in-house production capabilities, and may also supply its rival. The other is a downstream...
Persistent link: https://www.econbiz.de/10013243307
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