Response time and vendor-assembler relationship in a supply chain
- Authors
- Ahn, Scongje; Rhim, Hosun; Seog, S. Hun
- Issue Date
- 16-1월-2008
- Publisher
- ELSEVIER SCIENCE BV
- Keywords
- supply chain management; response time; incentive scheme; contract; long-term and short-term relationships
- Citation
- EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, v.184, no.2, pp.652 - 666
- Indexed
- SCIE
SCOPUS
- Journal Title
- EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
- Volume
- 184
- Number
- 2
- Start Page
- 652
- End Page
- 666
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/124230
- DOI
- 10.1016/j.ejor.2006.10.049
- ISSN
- 0377-2217
- Abstract
- Relationships between an assembler and a vendor in a supply chain are investigated in two-period models when the assembler wants to reduce response time by incentive systems. The assembler may offer myopic or farsighted incentive contracts to the vendor, under short-term or long-term relationships. Incentive schemes, effort levels, and expected payoffs under different perspectives and relationships are examined. We find that a farsighted assembler provides the vendor with a higher incentive than a myopic assembler in the first period. A long (short)-term relationship is preferred if the value of farsightedness under a long-term relationship is greater (less) than the switching option value under a short-term relationship. We propose several sufficient conditions regarding which perspectives and relationships are preferred. (C) 2006 Elsevier B.V. All rights reserved.
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Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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