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Impact of Supplier’s Lead Time on Strategic Assembler-Supplier Relationship in Pricing Sensitive Market

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Proceedings of the Thirteenth International Conference on Management Science and Engineering Management (ICMSEM 2019)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1002))

Abstract

Assemblers need to react to dynamic market in a timely manner in order to succeed in today’s competitive environment. To achieve timely delivery, some assembler may decide to buy and stock (BS) components from its suppliers and some may choose to contract its suppliers under vendor-managed inventory (VMI). This paper examines the impact of supplier’s lead-time on the assembler’s strategic choice of its partnership with suppliers. Analysis indicates that assembler will generate highest profit under BS and lowest profit under VMI. In addition, assembler will get higher profit by contracting with the lower lead-time supplier under VMI.

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Author information

Authors and Affiliations

  1. The Shiyan School Attached to Shijiazhuang No. 2 Middle School, Shijiazhuang, 051430, People’s Republic of China

    Jiayi Wei

  2. Shijiazhuang No. 17 Middle School, Shijiazhuang, 050051, People’s Republic of China

    Jiayi Wei

Authors
  1. Jiayi Wei
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Correspondence to Jiayi Wei .

Editor information

Editors and Affiliations

  1. Business School, Sichuan University, Chengdu, China

    Jiuping Xu

  2. Department of Mathematics and Statistics, Brock University on McMaster, Hamilton, ON, Canada

    Syed Ejaz Ahmed

  3. Department of Management, Monash University, Melbourne, VIC, Australia

    Fang Lee Cooke

  4. Academy of Sciences of Moldova, Chisinau, Moldova

    Gheorghe Duca

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Wei, J. (2020). Impact of Supplier’s Lead Time on Strategic Assembler-Supplier Relationship in Pricing Sensitive Market. In: Xu, J., Ahmed, S., Cooke, F., Duca, G. (eds) Proceedings of the Thirteenth International Conference on Management Science and Engineering Management. ICMSEM 2019. Advances in Intelligent Systems and Computing, vol 1002. Springer, Cham. https://doi.org/10.1007/978-3-030-21255-1_28

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