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Delivery leadtime and channel structure decisions for make-to-order duopoly under different game scenarios

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  • Xiao, Tiaojun
  • Choi, Tsan-Ming
  • Cheng, T.C.E.

Abstract

We develop game-theoretic models to explore the quoted delivery leadtime, price, and channel structure decisions for a make-to-order duopoly system under three game scenarios. Under the integrated-manufacturer first scenario, we find that (i) decentralization of the supply chain increases quoted leadtime; and (ii) both manufacturers may choose different channel structures under symmetric duopoly. By comparing with the symmetric scenario and the retailer first scenario, we find that a manufacturer facing a decentralized rival adopts decentralization when leadtime sensitivity, leadtime cost, and price elasticity are very small; the effect of decentralization on quoted leadtime largely depends on game scenario.

Suggested Citation

  • Xiao, Tiaojun & Choi, Tsan-Ming & Cheng, T.C.E., 2016. "Delivery leadtime and channel structure decisions for make-to-order duopoly under different game scenarios," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 113-129.
    • Handle: RePEc:eee:transe:v:87:y:2016:i:c:p:113-129
    DOI: 10.1016/j.tre.2016.01.003
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