Costs of Competition: Implications for Purchasing Strategy

Hahn, Chan K.; K, Kim; Kim, Jong Seung

doi:10.1111/j.1745-493x.1986.tb00161.x

Cited by 99 publications

(59 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…We limit the context of our supply disruption risk definition to a particular product purchased from a particular supplier. Several studies of industrial buyer behavior (Hahn et al, 1986;Treleven and Schweikhart, 1988) indicate that both the specific purchased product and particular supplier influence perceptions of risk. Finally, we note that our definition does not incorporate specific forms of loss, like financial, psychological, performance, physical, or social loss (Kaplan et al, 1974) or causes of loss, such as losses due to strikes, fires, natural disasters, or poor performance (Treleven and Schweikhart, 1988).…”

Section: Overall Supply Disruption Riskmentioning

confidence: 99%

Buyer perceptions of supply disruption risk: A behavioral view and empirical assessment

Ellis

Henry

Shockley

2009

J of Ops Management

309

283

View full text Add to dashboard Cite

As supply chains become more complex, firms face increasing risks of supply disruptions. The process through which buyers make decisions in the face of these risks, however, has not been explored. Despite research highlighting the importance of behavioral approaches to risk, there is limited research that applies these views of risk in the supply chain literature. This paper addresses this gap by drawing on behavioral risk theory to investigate the causal relationships amongst situation, representations of risk, and decision‐making within the purchasing domain. We operationalize and explore the relationship between three representations of supply disruption risk: magnitude of supply disruption, probability of supply disruption, and overall supply disruption risk. Additionally, we draw on exchange theories to identify product and market factors that impact buyers’ perceptions of the probability and magnitude of supply disruption. Finally, we look at how representations of risk affect the decision to seek alternative sources of supply. We test our model using data collected from 223 purchasing managers and buyers of direct materials. Our results show that both the probability and the magnitude of supply disruption are important to buyers’ overall perceptions of supply disruption risk. We also find that product and market situational factors impact perceptions of risk, but they are best understood through their impact on perceptions of probability and magnitude. Finally, we find that decisions are based on assessments of overall risk. These findings provide insight into the decision‐making process and show that all three representations of risk are necessary for fully understanding risky decision‐making with respect to supply disruptions.

show abstract

Section: Overall Supply Disruption Riskmentioning

confidence: 99%

Buyer perceptions of supply disruption risk: A behavioral view and empirical assessment

Ellis

Henry

Shockley

2009

J of Ops Management

309

283

View full text Add to dashboard Cite

show abstract

“…In the literature, reported works essentially deal with supplier selection strategies (Cohen and Lee [l], Hahn, Kim, and Kim [4], Hendrick and Ruch [ 5 ] , Newman [6], and Trevelen and Schweikhart [S]). Gurnani et al [3] address the supplier diversification when the quantity delivered is uncertain.…”

Section: Introductionmentioning

confidence: 99%

Supply management in assembly systems

Chen

Proth

Xie

1993

Naval Research Logistics

View full text Add to dashboard Cite

We consider the case when n components are needed to assemble a given product. Components are provided by suppliers, and the period between the order time and the time a component is available (i.e., the lead time) is a random variable with a known distribution. The due date for the assembled product is also known. The costs to be taken into account are the inventory costs of the components and the backlogging cost of the assembled product. We propose an iterative algorithm which leads to the optimal order instants of the components. © 1993 John Wiley & Sons, Inc.

show abstract

“…They also discussed the implications of purchasing decisions for marketing and the requirement for strategic cooperation between marketing and purchasing (Jain & Laric, 1979;Williams, Giunipero & Henthorne, 1994). Hahn, Kim, and Kim (1986) covered strategies for increasing competition including awarding multiple contracts, relying on short-term contracts, and competitive bidding. It is interesting to note that they found that the uncertainty of these methods can cause increased costs for the suppliers and does not necessarily pay off in the long-term.…”

Section: Strategic Sourcingmentioning

confidence: 99%

Joint-Base Contracting: A Comparative Analysis of Joint-Base Contracting Activities Between Services

Fiacco¹,

Stephens²

2011

View full text Add to dashboard Cite

Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188) Washington DC 20503. The objectives of the BRAC process were to achieve cost savings, transformation, improvement of capabilities, and enhancement of military value. Using a case study approach, this research identified the specific factors that contribute to the organizational successes of joint base contracting at Joint Base San Antonio (JBSA) and Joint Base Lewis-McChord (JBLM). These factors include processes, governance structures, organizational structures, and communication. This research also identifies barriers to consolidation as well as comparing and contrasting the way JBSA and JBLM operate. Additionally, this research identifies strengths and weaknesses of the approaches used by the Air Force and the Army. Thus, by documenting specific enablers and barriers, this research should help to guide the planning and implementation of future consolidations throughout DoD and other government organizations. AGENCY USE ONLY SUBJECT TERMS

show abstract

Costs of Competition: Implications for Purchasing Strategy

Cited by 99 publications

References 5 publications

Buyer perceptions of supply disruption risk: A behavioral view and empirical assessment

Buyer perceptions of supply disruption risk: A behavioral view and empirical assessment

Supply management in assembly systems

Joint-Base Contracting: A Comparative Analysis of Joint-Base Contracting Activities Between Services

Contact Info

Product

Resources

About