Abstract
We study alternative buyer strategies in markets where procurement costs are effected by economies of scale in the suppliers' production costs and by economies of scope in transportation. We consider buyer strategies with different levels of collaboration, namely, (i) no collaboration among buyers or buyer divisions, (ii) internal collaboration among the purchasing organizations of the same buyer enabled by an internal intermediary, and (iii) full collaboration among multiple buyers enabled by a third party intermediary. We test these buyer strategies under different market conditions and provide insights on when intermediaries have a significant impact on the economic value as well as the buyer surplus.
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Griffin, P.M., Keskinocak, P., Savaşsaneril, S. (2005). Improving Supply Chain Performance through Buyer Collaboration. In: Geunes, J., Akçali, E., Pardalos, P.M., Romeijn, H.E., Shen, ZJ.M. (eds) Applications of Supply Chain Management and E-Commerce Research. Applied Optimization, vol 92. Springer, Boston, MA. https://doi.org/10.1007/0-387-23392-X_3
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DOI: https://doi.org/10.1007/0-387-23392-X_3
Publisher Name: Springer, Boston, MA
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