2023
DOI: 10.1002/joom.1239
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Supplier bottleneck and information dissemination

Abstract: This paper investigates the capacity decisions of complementary suppliers who produce different components of a final product. The suppliers solicit private forecast information from a buyer who has more precise information regarding the market as compared to the suppliers. In this context, the lowest capacity built among suppliers—termed as effective capacity—represents the bottleneck of a supply chain, which in turn determines the throughput of the entire channel. The standard analysis based on full rational… Show more

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Cited by 3 publications
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