Abstract
In this paper, we consider a supply chain where two buyers compete by investing in in-house capacity and outsourcing the remaining part of its production requirements to a common supplier to serve their individual markets with uncertain demand. The supplier has the option to sell capacity to these buyers and to an alternative market with random demand. We determine the buyers’ optimal sourcing and in-house production capacity decisions under such scenario.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
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.