Procurement and information sharing games in group purchasing

Download

index.pdf

Date

2014

Author

Ünel, Sevgi

Metadata

Show full item record

Item Usage Stats

257
views

78
downloads

In this thesis, the value of collaboration and information sharing is analyzed for a market with two asymmetric competitive buyers. On one side of the chain, the supplier offers quantity discount. On the other side of the chain, the buyers may or may not engage in collaboration on purchasing quantity. The price is inverse linear function of the quantity supplied in the market. Buyers may receive a signal about uncertain market demand. Each buyer decides whether to share the signal with the other buyer and the supplier. First, four different cases are analyzed: (i) information is shared between the buyers and with the supplier, (ii) information is shared only between the buyers, (iii) neither the buyers nor the supplier shares the information, and (iv) buyers share the information only with the supplier. For each case optimum order quantity and whole sale price are calculated for both collaboration and no collaboration setting. Second, computational analysis is conducted by using the deducted results in order to determine the profit values of the parties. This leads to the following insights. First, if the market base is low for a buyer, it is substituted by other buyer. Second, the whole supply chain, supplier and weak buyer are better under collaboration setting however, the strong buyer is better only if the competition is low. Last, the supplier prefers to receive the signal, while the strong buyer is willing to share the signal with the supplier only if the difference between market bases is low.

Subject Keywords

Purchasing., Industrial procurement., Supply and demand., Nonlinear pricing., Game theory.

URI

http://etd.lib.metu.edu.tr/upload/12617002/index.pdf
https://hdl.handle.net/11511/23430

Collections

Graduate School of Natural and Applied Sciences, Thesis

Suggestions

OpenMETU
Core

Joint quantity flexibility for multiple products in a decentralized supply chain Karakaya, Selcuk; Bakal, İsmail Serdar (2013-02-01) In this study, we analyze a decentralized supply chain with a single retailer and a single manufacturer where the retailer sells multiple products in a single period. The products differ in terms of a limited number of features only. The retailer places initial orders based on preliminary demand forecasts at the beginning of the period and has an opportunity to modify its initial order after receiving perfect demand information. However, the final orders of the retailer are constrained by its initial orders...
Socioeconophysics: Opinion dynamics for number of transactions and price, a trader based model Tuncay, Çağlar (World Scientific Pub Co Pte Lt, 2006-10-01) Involving effects of media, opinion leader and other agents on the opinion of individuals of market society, a trader based model is developed and utilized to simulate price via supply and demand. Pronounced effects are considered with several weights and some personal differences between traders axe taken into account. Resulting time series and probabilty distribution function involving a power law for price come out similar to the real ones.
Collaboration and competition in presence of imperfect information and non-linear pricing Karabaş, Şükriye; Savaşaneril Tüfekci, Seçil; Department of Industrial Engineering (2012) In this thesis, a market is assumed with n competing buyers where price is an inverse linear function of the quantity supplied to the market. The buyers get engaged in Cournot competition, but may also collaborate on purchasing decisions from a supplier. The supplier offers a quantity discount, as the quantity purchased increases unit price decreases. Furthermore, the demand base in the market is uncertain, but the buyers may get a signal of the demand. In this setting, the value of collaboration, informati...
Financial modelling with random bridge signals and forward information Aydın, Nadi Serhan; Weber, Gerhard Wilhelm; Constantinides, Anthony G.; Department of Financial Mathematics (2016) In this thesis, we focus on modelling financial information flow, and information-based asset pricing. The fundamental properties of the framework under study are recovered in detail, after which a brief information-theoretic perspective is offered to quantify the information content of signals. A link to the existing literature on asymmetric information/belief equilibrium is established through a sequential auction model with heterogeneous signals. The effects of differential information on the allocation ...
Supplier development in a multi-tier supply chain Karaer, Özgen; Yalcin, Pinar (Informa UK Limited, 2019-10-16) We examine how a buyer can use a full-control strategy and cost sharing to develop the sustainable quality capabilities of his tier-1 and tier-2 suppliers. In particular, we consider how the buyer?s development decisions and the suppliers? sustainable quality decisions are impacted by consumers? demand sensitivity to sustainable quality and the division of the supply chain margin. Two quality-demand models are studied ? the overall quality of the supply chain equals either (i) the sum of or (ii) the minimum...

Citation Formats

S. Ünel, “Procurement and information sharing games in group purchasing,” M.S. - Master of Science, Middle East Technical University, 2014.