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Can I read Inducing Supplier Backup via Manufacturer Information Sharing Under Supply Disruption Risk on EtoBox?
Inducing Supplier Backup via Manufacturer Information Sharing Under Supply Disruption Risk by Guo Li; Xiaochuan Li; Mengqi Liu is a Engineering article available to read on EtoBox.
What is Inducing Supplier Backup via Manufacturer Information Sharing Under Supply Disruption Risk about?
What comes along with the repeating and wide-range COVID-19 outbreak is the increasingly latent supply disruption risk encountered by global supply chains. Among many instruments to enhance supply chain resilience, backup production may be an appropriate choice, whereas how to induce the supplier backup becomes an obstacle. In this study, we investigate a supply chain in the context of the crisis-like new normal with supply disruption risk, wherein a manufacturer uses private demand information as a strategic lever, according to which a supplier decides whether to adopt backup production. Our findings reveal that the supplier’s equilibrium decision on the adoption of backup production exhibits a cutoff structure when the manufacturer shares demand information. Moreover, we uncover the effect of information sharing on backup decision. In specific, information sharing impedes the adoption of backup production under low demand potential while promoting it under high demand potential. Interestingly, the manufacturer may have the incentive to share the demand information with the upstream supplier if the demand variability is low and the backup cost is moderate, and such information sha
Who reads Inducing Supplier Backup via Manufacturer Information Sharing Under Supply Disruption Risk?
It is typically read by researchers, students, and practitioners in Engineering.
- Author
- Guo Li; Xiaochuan Li; Mengqi Liu
- Publisher
- Elsevier BV
- Published
- 2023
- Language
- EN
- Field
- Engineering (Physical Sciences)