Abstract
Incentives are quite common to be utilized in engineering applications such as some infrastructure development projects or construction projects. Due to the increasing complexity of construction management and the continuing trend towards outsourcing of component or engineering outsourcing activities, we focus on the issue of incentive design. Time collaboration is one of the main focuses of random project duration time in parallel projects. In this article, we consider a setting where a manufacturer outsources two parallel subtasks to two different suppliers, and the manufacturer is time sensitive. On the premise that the project completion time follows the exponential distribution, some models are established to compare the proposed incentives and we get the comparative analysis of the proposed incentives. This paper puts forward three kinds of time-based incentive mechanisms, namely, deadline incentive mechanism, competition mechanism and mixed incentive mechanism. We do modeling analysis for all incentive mechanisms. We get the optimal work rates determined by suppliers and compare various incentive mechanisms to maximize manufacturers' profits.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Advances in Production Engineering & Management
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
