Towards dynamic contract extension in supplier development View Full Text


Ontology type: schema:ScholarlyArticle      Open Access: True


Article Info

DATE

2016-12

AUTHORS

Karl Worthmann, Michael Proch, Philipp Braun, Jörg Schlüchtermann, Jürgen Pannek

ABSTRACT

We consider supplier development within a supply chain consisting of a single manufacturer and a single supplier. Because investments in supplier development are usually relationship-specific, safeguard mechanisms against the hazards of partner opportunism have to be installed. Here, formal contracts are considered as the primary measure to safeguard investments. However, formal contracts entail certain risks, e.g., a lack of flexibility, particular in an ambiguous environment. We propose a receding horizon control scheme to mitigate possible contractual drawbacks while significantly enhancing the supplier development process and, thus, to increase the overall supply chain profit. Our findings are validated by a numerical case study. More... »

PAGES

14

References to SciGraph publications

Identifiers

URI

http://scigraph.springernature.com/pub.10.1007/s12159-016-0141-z

DOI

http://dx.doi.org/10.1007/s12159-016-0141-z

DIMENSIONS

https://app.dimensions.ai/details/publication/pub.1001010296


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