- Date
- Friday 22 Nov 2019, 12:00 - 13:00
- Type
- Seminar
- Spoken Language
- English
- Room
- EB-12
- Building
- E Building
- Location
- Campus Woudestein
Mirjam Meijer (Eindhoven University of Technology (TU/e)
In high-tech manufacturing, shortage of a single component from a supplier can lead to extremely costly delivery delays of a manufacturer's product.
To avoid such shortages a manufacturer can incentivize her suppliers to develop sufficient costly capacity. To provide strong incentives, a manufacturer may develop a long-term relationship with her supplier. We model this relation as a repeated Stackelberg game in which the manufacturer is the natural leader. After each epoch, corresponding to one generation of the product, the manufacturer decides on her supplier for the next product generation. We compare the case in which this decision takes into account performance of the current supplier to the case where it is not affected by performance and evaluate the effect on individual and supply chain profits. We show that, especially when the supplier has a high valuation of future profits, long-term relationships based on supplier performance can improve supply chain coordination.
Registration
For registration please send and email to the Econometric Institute secretarial office at eb-secr@ese.eur.nl. Registration is required for availability of lunch.
Organiser
- More information
Contact: Secretarial office, eb-secr@ese.eur.nl