Supplier selection is one of the most critical activities of purchasing management in supply chain and managers increasingly face sourcing decisions of how to selected suppliers. This paper illustrates the development of a sourcing decision that provides support for the buyer firm in supply chain.The models developed here, involved selecting between single and dual sourcing. Outside and local s...

In a buyer-supplier game, a special type of assignment game, a distinguished player, called the buyer, wishes to purchase some combinatorial structure. A set of players, called suppliers, offer various components of the structure for sale. Any combinatorial minimization problem can be transformed into a buyer-supplier game. While most previous work has been concerned with characterizing the cor...

In supply chain co-opetition, firms simultaneously compete and co-operate in order to maximize their profits. We consider the nature of co-opetition between two firms: The product supplier invests in the technology to improve quality, and the purchasing firm (buyer) invests in selling effort to develop the market for the product before uncertainty in demand is resolved. We consider three differ...

This paper examines a symmetric first-price procurement auction in which one supplier is preferred by the buyer. Preference takes the form of a right-of-first-refusal which allows the preferred supplier to accept or reject the contract at the lowest bid of the other competing suppliers. We first characterize a strictly monotonic bidding function for the competing suppliers. We then show that th...

Achieving competitive advantage in a dynamic environment requires firms to exploit their current capabilities and explore new opportunities through innovation. Organizational learning theory refers these two types of focused activities as exploitation exploration, jointly ambidextrous learning. Suppliers can play an important role the process. This research focuses on strategic operational info...

The risk of supply disruption increases as firms seek to procure from cheaper, but unproven, suppliers. We model a supply chain consisting of a single buyer and two suppliers, both of whom compete for the buyer’s order and face risk of supply disruption. One supplier is comparatively more reliable but also more expensive, while the other unreliable one is cheaper and faces higher risk of disrup...

Sourcing from emerging economies may yield direct cost savings, but companies often face greater risk of supplier responsibility problems due to many factors, with lax regulatory enforcement in these regions being one of them. Intuitively, to mitigate such risks, companies can design incentive schemes in sourcing contracts and invest in screening mechanisms for supplier sourcing. However, the r...

We consider a model of bribery in an asymmetric procurement auction. In return for a bribe from the dishonest supplier, the auctioneer has the discretion to allow this supplier to revise his bid downward to match the low bid of the honest supplier. The dishonest supplier can also win the contract outright without paying a bribe by bidding below the honest supplier. We investigate the effect of ...