The more the better? Optimal degree of supply-chain cooperation between competitors

Pun, Hubert

doi:10.1057/jors.2015.40

Cited by 34 publications

(29 citation statements)

References 20 publications

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“…1. Supply chain coordination implies a supply chain is coordinated when its individual members all make their decisions which are the same as the optimal ones for the whole supply chain system (Chopra and Meindl 2015;Pun 2015). 2.…”

Section: Disclosure Statementmentioning

confidence: 99%

A review on supply chain contracting with information considerations: information updating and information asymmetry

Shen

Choi

Minner

2018

International Journal of Production Research

237

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Supply chain contracting and the use of information are undoubtedly two critical and influential areas in modern supply chain management. However, relatively little is known about supply chain contracting mechanisms with different information settings. To fill this gap, we review and classify the related supply chain contracting literature into three categories with respect to different kinds of information considerations, namely (i) demand information updating, (ii) supply information updating and (iii) information asymmetry. We report the publication trend and classify the commonly studied supply chain contracts with the use of information such as pricing contracts, commitment contracts and menu of contracts. We discuss how contracting and the use of information influence each other in the supply chain. Moreover, we review the major application areas of information usage and report the historical development of major related topics. Finally, we propose several important future research directions.

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Section: Disclosure Statementmentioning

confidence: 99%

A review on supply chain contracting with information considerations: information updating and information asymmetry

Shen

Choi

Minner

2018

International Journal of Production Research

237

View full text Add to dashboard Cite

show abstract

“…Niu et al [26] studied the influence of pricing order on ODM and OEM with coopetition relationship, and analyzed two different market situations. Pun [27] studied two OEMs that compete in a downstream market but need to buy raw materials from each other and found that cooperating with competitors can be harmful. Xu et al [28] studied the coopetition in the service outsourcing supply chain, and set the service commission contract as two parts: fixed and unit commission.…”

Section: Literature Reviewmentioning

confidence: 99%

Outsourcing Strategy With Patent Licensing in an Electronic Product Supply Chain

2020

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An electronic product like a smartphone might involve hundreds of thousands of patents. The risks caused by infringement make it necessary for enterprises to consider patent licensing when outsourcing production activities in the electronics industry. This paper studies the outsourcing strategy considering patent licensing in an electronic product supply chain composed of a patent-holding firm, an original equipment manufacturer (OEM) and a contract manufacturer (CM). In addition to outsourcing manufacturing to the CM, OEM also considers outsourcing the patent license obtaining as well. We construct two outsourcing modes, called Turnkey and Consignment. No matter under which outsourcing mode, the patent-holding firm will charge unit royalty and a fixed fee paid in a lump sum. The results show that the OEM tends to choose Consignment without considering fixed fees, while the CM prefers Turnkey. When considering fixed fees, the patent-holding firm could align their preferences by coordinating fixed fees borne by OEM and CM. What's more, considering the environmental pollution caused by the production of electronic products, both strategies may lead to higher social welfare than the other strategy. INDEX TERMS OEM, patent licensing, outsourcing, coopetition supply chain.

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“…The component can be a monitor for the TPV example, an NAND Flash memory for the Samsung example, or a battery pack in Tesla example. For simplicity, we follow the literature on the supply‐chain relationship between competitors (e.g., Venkatesh et al., ; Xu et al., ; Wang et al., ; Pun, , ) by assuming that the final product consists of this component only.…”

Section: Model Developmentmentioning

confidence: 99%

Optimal Outsourcing Strategies When Capacity Is Limited

2017

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Outsourcing the production of selected components to competitors is becoming more common among original brand manufacturers (OBMs); however, OBMs’ increased attention to outsourcing and the growing demand in many markets can result in capacity allocation conflicts for the contract manufacturers. In this study, we consider a scenario in which the OBM decides whether to outsource to a third‐party supplier or to a competitive contract manufacturer (CCM) who has the option of producing a competing product and also has limited capacity. This setting consists of two levels of competition: competition in the component market between the CCM and the spot market, and competition in the final‐product market between the OBM and the CCM. The CCM first chooses the wholesale price and decides whether or not to sell a competing product to the customers. Next, the OBM decides the proportion of its component demand to outsource to the CCM, and then firms set the retail prices. We are interested in investigating the impacts of the CCM's capacity and the impacts of these two levels of competition. We show that the OBM might multisource its component demand only when competition in the final‐product market is intense. We also find that when the CCM's capacity increases, demand may decrease, while the retail price may increase. Moreover, the CCM can be worse off from having more capacity, even when the CCM's capacity is available for free. Our results also show that demand may increase when competition in the final‐product market becomes more intense. Finally, we find that the value of having a third‐party supplier to produce the component decreases amid the intensity of competition in the final‐product market.

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The more the better? Optimal degree of supply-chain cooperation between competitors

Cited by 34 publications

References 20 publications

A review on supply chain contracting with information considerations: information updating and information asymmetry

A review on supply chain contracting with information considerations: information updating and information asymmetry

Outsourcing Strategy With Patent Licensing in an Electronic Product Supply Chain

Optimal Outsourcing Strategies When Capacity Is Limited

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