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| Author: | Ha, A. Y. Li, L. Ng, S-M. |
| Title: | Price and delivery logistics competition in a supply chain |
| Journal: | Management Science
2003 : SEP, VOL. 49:9, p. 1139-1153 |
| Index terms: | Logistics Pricing Supply chain Supply chain management |
| Freeterms: | Delivery |
| Language: | eng |
| Abstract: | A supply chain in which two suppliers compete for supply to a customer is considered. Pricing and delivery-frequency decisions in the system are analyzed by two three-stage noncooperative games with different decision rights designated to the parties involved. The customer first sets the price (or delivery frequency) for each supplier. After that, the suppliers offer the delivery frequencies (or prices) simultaneously and independently. Finally, the customer determines how much demand to allocate to each of the suppliers. It is shown that delivery frequency, similar to delivery speed in time-based competition, can be a source of competitive advantage. |
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