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Seminar
Department of Systems Engineering and Engineering Management
The Chinese
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Title |
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The Comparison of Two Vertical Outsourcing
Structures under Push and Pull Contracts |
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Speaker |
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Prof. Amanda Yulan WANG |
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Date |
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Jun 11, 2012 (Monday) |
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Time |
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11:15 a.m. - 12:30 p.m. |
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Venue |
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Room 513 |
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William M.W. Mong Engineering
Building |
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(Engineering Building Complex Phase 2) |
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CUHK |
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Abstract:
In a three-tier supply chain comprising an original equipment manufacturer
(OEM), a
contract manufacturer (CM) and a supplier, there exist two typical outsourcing structures:
control and delegation. Under the control structure, the OEM contracts with the CM and
the supplier respectively. Under the delegation structure, the OEM contracts with the CM
only and the CM subcontracts with the supplier. We compare the two outsourcing structures
under a push contract (whereby orders are placed before demand is realized) and a pull
contract (whereby orders are placed
after demand is realized). For all combinations of outsourcing
structures and contracts, we derive the corresponding equilibrium wholesale
prices, order
quantities and capacities. We find that the equilibrium production quantity is higher under
control than under delegation for the push contract whereas the reverse holds for the pull
contract. Both the OEM and the CM prefer control over delegation under the push contract.
However, under the pull contract, the OEM prefers control over delegation whereas the
CM and the supplier prefer delegation over control. We also show that for a given
outsourcing structure, the OEM prefers the pull contract over the push contract. In extending
our settings to a general two-wholesale-price (TWP) contract, we find that when wholesale
prices are endogenized decision variables, the TWP contract under our setting degenerates to
either a push or a pull contract.
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Biography:
Dr Yulan Wang received
her Ph.D degree in Business Administration from |
************************* ALL ARE WELCOME ************************
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Host |
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Prof. Duan Li |
Tel |
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(852)
3943-8316/8323 |
Email |
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Enquiries |
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Prof. Nan Chen or Prof. Sean X. Zhou |
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Department of Systems Engineering and Engineering
Management |
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CUHK |
Website |
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