Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/155382
Full metadata record
DC FieldValueLanguage
dc.contributor.authorChen, Lucy Gongtaoen_US
dc.contributor.authorTang, Qinshenen_US
dc.date.accessioned2022-02-22T02:46:07Z-
dc.date.available2022-02-22T02:46:07Z-
dc.date.issued2021-
dc.identifier.citationChen, L. G. & Tang, Q. (2021). Supply chain performance with target-oriented firms. Manufacturing & Service Operations Management. https://dx.doi.org/10.1287/msom.2021.1029en_US
dc.identifier.issn1523-4614en_US
dc.identifier.urihttps://hdl.handle.net/10356/155382-
dc.description.abstractWe study a supply chain in which a supplier sets the whole-sale price and a retailer responds with an order quantity. Both of the two firms can be either risk-neutral—maximizing the expected profit—or target-oriented, which is to maximize her or his ability to reach a target profit. We provide strong support for firms’target-based preference and the linear target formation model through a survey as well as analyzing company data. With the firms’ target-oriented behavior evaluated by a CVaR-satisficing measure, we apply a game theoretical framework to investigate how the target-based preference affects supply chain performance. We find that, a firm, be it a supplier or a retailer, is always hurt by its target-based preference but can benefit from its trading partner’s target-based preference. A risk-neutral supplier, for example, can sometimes reap the whole supply chain’s profit if the retailer is target-oriented, and a target-oriented supplier always performs better with a target-oriented retailer than a risk-neutral one. Furthermore, a target-oriented retailer and/or supplier can help alleviate the double-marginalization effect and with a specific target, can help the supply chain achieve the same efficiency level as in a risk-neutral centralized system, with just a wholesale price contract. Another important finding is that if both firms are target-oriented, then the supply chain can have a higher expected profit under a decentralized system than a centralized one. This contrasts with the case when both firms are risk-neutral. We also investigate the role of outside option and retailer-type misidentification and find that both can alleviate the retailer’s disadvantage of being target-oriented.en_US
dc.description.sponsorshipNanyang Technological Universityen_US
dc.language.isoenen_US
dc.relation020022-00001en_US
dc.relation.ispartofManufacturing & Service Operations Managementen_US
dc.rights© 2021 INFORMS. All rights reserved. This paper was published in Manufacturing & Service Operations Management and is made available with permission of INFORMS.en_US
dc.subjectBusiness::Operations management::Supply chain managementen_US
dc.titleSupply chain performance with target-oriented firmsen_US
dc.typeJournal Articleen
dc.contributor.schoolCollege of Business (Nanyang Business School)en_US
dc.identifier.doi10.1287/msom.2021.1029-
dc.description.versionAccepted versionen_US
dc.subject.keywordsTarget-Orienteden_US
dc.subject.keywordsTarget Modelsen_US
dc.subject.keywordsSupply Chain Performanceen_US
dc.subject.keywordsWholesale Price Contracten_US
dc.description.acknowledgementQ. Tang was supported by Nanyang Technological University [Start-Up Grant 020022-00001].en_US
item.grantfulltextopen-
item.fulltextWith Fulltext-
Appears in Collections:NBS Journal Articles
Files in This Item:
File Description SizeFormat 
SC_target_firm_final.pdf1.07 MBAdobe PDFView/Open

SCOPUSTM   
Citations 50

1
Updated on Jan 27, 2023

Page view(s)

89
Updated on Jan 29, 2023

Download(s) 50

100
Updated on Jan 29, 2023

Google ScholarTM

Check

Altmetric


Plumx

Items in DR-NTU are protected by copyright, with all rights reserved, unless otherwise indicated.