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- Title
Strategic Dynamic Sourcing from Competing Suppliers with Transferable Capacity Investment.
- Authors
Cuihong Li; Debo, Laurens G.
- Abstract
The article presents a study which examines whether buyer preferred long term or short term relationship when investing in specific transferable capacity operated by a supplier. It notes that optimal relationship choice of a buyer influences the level of upfront specific investment. Thus, it analyzes a model with a two-period horizon to understand the determinants of the supplier-relationship decision of a buyer. It assessed the advantages and disadvantages of long- and short-term relationship.
- Subjects
SUPPLIER relationship management; INDUSTRIAL procurement; SUPPLY chain management; INVESTMENTS; DETERMINANTS (Mathematics); DECISION making
- Publication
Naval Research Logistics, 2009, Vol 56, Issue 6, p540
- ISSN
0894-069X
- Publication type
Article
- DOI
10.1002/nav.20362