In a decentralized supply chain, supplier-buyer negotiations have a dynamic aspect that requires both players to consider the impact of their decisions on future decisions made by their counterpart. The interaction generally couples strongly the price decision of the supplier and the quantity decision of the buyer. As a result, the outcome of the negotiation may not have an equilibrium. We prop...

IT-enabled exchanges in electronic markets have significant implications for buyer-supplier relationships. Building on previous research that emphasizes the role of intangible assets in inter-organizational relationships, this study argues that buyers are less likely to use reverse auctions for supplier relationships involving a high degree of non-contractibility. The argument complements tradi...

We study capacity reservation contracts in high-tech manufacturing, where the manufacturer (the supplier) shares the risk of capacity expansion with her OEM customer (the buyer). We focus on shortlife-cycle, make-to-order products under stochastic demand. The supplier and the buyer are partners who enter a "design-win" agreement to develop the product, and who share demand information. The supp...

Purpose of the paper and literature addressed: The purpose of this research is to understand why early supplier integration in new product development repeatedly fails and how to select the right suppliers to avoid supplier obstructionism. We review the literature on early supplier integration. Research method: We conducted a consortial benchmarking study, involving seven firms as part of the r...

In this research, an integrated supplier-buyer inventory system is studied when market demand is price-sensitive trapezoidal and units in inventory are subject to deterioration at a constant rate. The buyer has an option to choose between discount in unit price and delay in settling the account against the purchases made offered by the supplier. This type of trade credit is termed as ‘net credi...