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| Author: | Cvsa, V. Gilbert, S. M. |
| Title: | Strategic commitment versus postponement in a two-tier supply chain |
| Journal: | European Journal of Operational Research
2002 : SEP, VOL. 141:3, p. 526-543 |
| Index terms: | SUPPLY CHAIN MANAGEMENT OPTIONS GAME THEORY STRATEGY |
| Language: | eng |
| Abstract: | In this paper the trade-off between strategic commitment and operational flexibility is examined as it arises in a supply chain when a supplier offers competing buyers opportunities to make early purchase commitments for a product with a short life cycle. Traditionally, the use of incentives for early purchase commitments for short life-cycle products has been justified on the basis of a supplier's production lead times or capacity constraints. An alternative explanation has been proposed by offering early purchasing opportunities, a supplier can influence the form of competition in the downstream market. |
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