We study the decision of a manufacturer (buyer), expecting new sourcing opportunities in the future, to select between a sole and a second sourcing mechanism for a non-commodity component. In a sole sourcing mechanism, the buyer commits to source from the current supplier. In a second sourcing mechanism, the buyer keeps the option open to source from a new supplier in the future. For a buyer th...

We study a repeated game in which a buyer must decide whether to procure goods whose design may turn out to be defective through auctions or negotiations. To reduce the likelihood of failure, the buyer must motivate the potential suppliers to make an investment before the contract is signed. As the noisy signal of the supplier’s investment is non-verifiable, the buyer can induce the suppliers t...

We present a dynamic model of trading under adverse selection. A seller faces a sequence of randomly arriving buyers. Each buyer receives a noisy signal about the quality of the asset and offers a price. We show that there is generically a unique equilibrium and characterize the resulting trading dynamics. Buyers’ beliefs about the quality of the asset gradually increase or decrease over time, ...

In this paper, we analyze negotiations of investment shares in interorganizational supply chains. To formulate the research issue more precisely, we develop a taxonomy of enterprise networks in general. We propose an investment sharing model that makes use of Shapley values as indicators of relative negotiation power in a network. It turns out that a focal buyer (supplier) in a supply chain can...

E−markets have been established in many industries as a sourcing option for buyers, yet in many situations they are used to complement long−term supplier−buyer relationships rather than replacing them. In this paper, we analyze the complementary role of e−markets when the buyer uses e−markets as an outside option in bargaining with the traditional supplier. The supplier may choose to make a rel...

This study explores simultaneous reduction strategies of lead time and setup cost in a two-stage supply chain model under trade-credit financing. Lead depends on variable production rate lot size. It consists setup, production, transportation which are shortened to reduce time. Although double safety factors considered avoid stock-out; but still backorders take place as the demand during is sto...

changes are inevitable in construction projects. they could lead to disruptive impacts on the quality, schedule and budget of projects. identifying changes and anticipating their consequences can help project teams mitigate these negative impacts. as a result, a change process model has been defined to improve this procedure. at first the present paper the defines some of the key terms in this ...

This paper theoretically and empirically examines the conventional wisdom in procurement management that often portrays supply inspections and supplier plant inspections as substitutes. We develop a theoretical model that focuses on potential internal spillover costs of the buyer receiving low-quality inputs and external spillover costs should low-quality inputs go undetected. Key to our analys...