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Supply chain decision-making supported by an open books policy

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  • Agndal, Henrik
  • Nilsson, Ulf

Abstract

Based on a study of a buyer-seller relationship in the automotive industry, this article identifies 17 different decision-making processes where openly sharing cost data--a so-called open books policy--plays an important supporting role. These processes relate to supplier selection, various activities that occur prior to production, and the full-speed production stage of the exchange process. Overall, open books plays the greatest role in the pre-production stage, although it is found to support decision-making relating to supplier selection and decision-making during full-speed production to a greater extent than the literature recognizes.

Suggested Citation

  • Agndal, Henrik & Nilsson, Ulf, 2008. "Supply chain decision-making supported by an open books policy," International Journal of Production Economics, Elsevier, vol. 116(1), pages 154-167, November.
    • Handle: RePEc:eee:proeco:v:116:y:2008:i:1:p:154-167
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    3. Bortolotti, Thomas & Romano, Pietro & Martínez-Jurado, Pedro José & Moyano-Fuentes, José, 2016. "Towards a theory for lean implementation in supply networks," International Journal of Production Economics, Elsevier, vol. 175(C), pages 182-196.
    4. Romano, Pietro & Formentini, Marco, 2012. "Designing and implementing open book accounting in buyer–supplier dyads: A framework for supplier selection and motivation," International Journal of Production Economics, Elsevier, vol. 137(1), pages 68-83.
    5. Oll, Grete, 2014. "Opportunistic Disclosure in the Inter-Organizational Relationships," Discussion Papers on Economics 21/2014, University of Southern Denmark, Department of Economics.
    6. Li, Hongmin & Wang, Yimin & Yin, Rui & Kull, Thomas J. & Choi, Thomas Y., 2012. "Target pricing: Demand-side versus supply-side approaches," International Journal of Production Economics, Elsevier, vol. 136(1), pages 172-184.
    7. Rafael Araujo Sousa Farias, 2016. "Interorganizational Cost Management Study on Inhibitor," International Business Research, Canadian Center of Science and Education, vol. 9(3), pages 68-78, March.
    8. Formentini, Marco & Romano, Pietro, 2011. "Using value analysis to support knowledge transfer in the multi-project setting," International Journal of Production Economics, Elsevier, vol. 131(2), pages 545-560, June.
    9. Abdul Azeez Badir Alnidawi & Fatimah Musa Omran, 2016. "Human Resources Management Activities Adopted in the Value Chain Model and their Impact on the Organizational Sustainability-An Empirical Study in the Jordanian Pharmaceutical Companies," International Business Research, Canadian Center of Science and Education, vol. 9(8), pages 106-117, August.
    10. Michele Bisceglia, 2023. "Vertical Contract Disclosure in Three‐Tier Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 71(1), pages 1-46, March.
    11. Ehie, Ike C., 2010. "The impact of conflict on manufacturing decisions and company performance," International Journal of Production Economics, Elsevier, vol. 126(2), pages 145-157, August.
    12. Zhang, Chun & Henke, John W. & Viswanathan, Sridhar, 2015. "Reciprocity between buyer cost sharing and supplier technology sharing," International Journal of Production Economics, Elsevier, vol. 163(C), pages 61-70.
    13. Stadtherr, Frank & Wouters, Marc, 2021. "Extending target costing to include targets for R&D costs and production investments for a modular product portfolio—A case study," International Journal of Production Economics, Elsevier, vol. 231(C).

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