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Negotiations Within Supply Chains

Author

Listed:
  • Carsten Homburg

    (University of Mannheim)

  • Christoph Schneeweiss

    (University of Mannheim)

Abstract

In this paper we consider a negotiation between a supplier and its retailer. Due to the supplier's commitments with other customers the negotiation is about the maximum order quantity the retailer can order at a fixed price. We propose a structuring for the negotiation that captures two main features: First, we take into account that the supplier can strategically change its production facilities. The impact of this strategic decision is captured by the corresponding change of the supplier's cost situation. Second, we consider the uncertainty about the retailer's future demand due to its own customers. The negotiation takes place with respect to different demand scenarios, yielding a variety of possibilities of avoiding negotiation deadlocks.

Suggested Citation

  • Carsten Homburg & Christoph Schneeweiss, 2000. "Negotiations Within Supply Chains," Computational and Mathematical Organization Theory, Springer, vol. 6(1), pages 47-59, May.
    • Handle: RePEc:spr:comaot:v:6:y:2000:i:1:d:10.1023_a:1009673225809
    DOI: 10.1023/A:1009673225809
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    References listed on IDEAS

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    Cited by:

    1. Hang Yang & Simon Fong, 2013. "Optimizing dynamic supply chain formation in supply mesh using CSET model," Information Systems Frontiers, Springer, vol. 15(4), pages 569-588, September.

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