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Strategic interactions in service supply chain with horizontal competition

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  • X. Tang
  • S. Fang
  • F. Cheng

Abstract

We analyze strategic interaction issues that arise in service supply chain, such as consulting, service outsourcing, and travel service. To capture strategic interactions in service supply chain, we study a case where there are two service vendors providing competing service products and selling them through a common Service Integrator. In particular, we derive and compare equilibrium solutions (e.g. service prices, wholesale prices, service volumes) for the service supply chain under three different scenarios. We then study the effect of key parameters in the model upon the equilibrium solution using sensitivity analysis, and discuss our results along with a numerical experiment. Finally, future research direction is pointed out. Copyright Sociedad de Estadística e Investigación Operativa 2014

Suggested Citation

  • X. Tang & S. Fang & F. Cheng, 2014. "Strategic interactions in service supply chain with horizontal competition," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 22(2), pages 469-488, July.
    • Handle: RePEc:spr:topjnl:v:22:y:2014:i:2:p:469-488
    DOI: 10.1007/s11750-012-0265-5
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    3. Wang, Yulan & Wallace, Stein W. & Shen, Bin & Choi, Tsan-Ming, 2015. "Service supply chain management: A review of operational models," European Journal of Operational Research, Elsevier, vol. 247(3), pages 685-698.

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