IDEAS home Printed from https://ideas.repec.org/a/igg/joris0/v3y2012i4p74-87.html
   My bibliography  Save this article

The Strategic Use of a Wholesale-Price Contract in a Decentralized Assembly System

Author

Listed:
  • Zhaoqiong Qin

    (Department of Applied Engineering Technology, North Carolina A&T State University, Greensboro, NC, USA)

Abstract

Increasing global competition provides the opportunity for companies to pursue cost reduction. Therefore, a decentralized assembly channel structure has been widely adopted by many manufacturing firms. The author studies an assembling system where one party needs to pay the wholesale price to order one component from the other party and assembles the final product. They assume that there is enough capacity for the two parties to provide the components and assemble the final product. Based on each party pursuing its own maximized profit, the author develops a model and analyzes different mechanisms of deciding the wholesale price of the component. The author’s objective is to optimize the whole supply chain for improving the customer service level. Results are derived for the author to recommend the optimal mechanism.

Suggested Citation

  • Zhaoqiong Qin, 2012. "The Strategic Use of a Wholesale-Price Contract in a Decentralized Assembly System," International Journal of Operations Research and Information Systems (IJORIS), IGI Global, vol. 3(4), pages 74-87, October.
    • Handle: RePEc:igg:joris0:v:3:y:2012:i:4:p:74-87
    as

    Download full text from publisher

    File URL: http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/joris.2012100105
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:igg:joris0:v:3:y:2012:i:4:p:74-87. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journal Editor (email available below). General contact details of provider: https://www.igi-global.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.