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

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

Transportation Research Part E: Logistics and Transportation Review, 2016, vol. 87, issue C, 113-129

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.

Keywords: Channel structure; Leadtime; Strategic decentralization; Game theory; Supply chain management; Make-to-order manufacturer (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S136655451600003X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:87:y:2016:i:c:p:113-129

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2016.01.003

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().