Collaborative procurement among competing buyers

Collaborative procurement emerged as one of the many initiatives for achieving improved inter-firm coordination and collaboration. In this article, we adopt a game-theoretical approach to study the interaction between two firms who procure jointly, but produce independently and remain competitors in a product market characterized by price-sensitive demand. We study the underlying economics behind collaborative procurement, examine the effects of collaboration on buyer and supplier profitability, and derive conditions under which collaboration is beneficial to each participant. We find that a necessary and sufficient condition for a buyer to collaborate is to increase its sales. We identify the conditions that lead equal size buyers (i.e., consortia consisting of only large buyers or only small buyers) versus different size buyers to collaborate, We also determine the conditions that make collaboration profitable for the Supplier, and show that rather than selling a large quantity to a single buyer, the supplier prefers to sell to multiple buyers in smaller quantities. (C) 2008 Wiley Periodicals. Inc.


Using analytic network process to predict the performance of international construction joint ventures
Ozorhon, Beliz; Dikmen Toker, İrem; Birgönül, Mustafa Talat (American Society of Civil Engineers (ASCE), 2007-07-01)
Strategic collaborations such as joint ventures (JVs) have become an important way of exploiting business opportunities for construction companies. However, such entities are difficult to manage due to their composite structures, which entail diverse organizational cultures, styles, and objectives. Therefore, measurement of JV performance has been an interesting research topic although there is no consensus on the definition, measures, and variables of performance yet. Considering the inherent complexities ...
Rebalancing the assembly lines with total squared workload and total replacement distance objectives
Girit, Utku; Azizoğlu, Meral (Informa UK Limited, 2020-01-01)
Assembly line balancing is an important and well recognised operations research problem. The current line balance may not stay optimal, even feasible, due to the disruptions in one or more workstations. In this study, after the disruption, we aim to rebalance the assembly line by considering the trade-off between workload balancing (fairness measure) and total replacement distance for the tasks assigned to the different workstations (stability measure). We try to generate all non-dominated objective functio...
HAUSMAN, WH; ERKIP, NK (Institute for Operations Research and the Management Sciences (INFORMS), 1994-05-01)
Multi-echelon inventory systems are often controlled as a network of single-echelon inventory systems for simplicity of managerial authority, organizational control, and performance monitoring. This paper explores the amount of suboptimization in such a situation, using an actual demand data set provided by other researchers. We consider low-demand, high-cost items controlled on an (S - 1, S) basis, with all warehouse stockouts met on an emergency-ordering basis. We demonstrate that the suboptimality penalt...
Alignment of project management with business strategy in construction: evidence from the Turkish contractors
BUDAYAN, Cenk; Dikmen Toker, İrem; Birgönül, Mustafa Talat (2015-01-02)
The importance of fit between an organization's implementation of project management (PM), and its business level strategy is emphasized in the literature. However, there are a limited number of studies investigating the relationship between business level strategy and implementation of PM in the construction industry. This paper aligns one of the business strategies, namely differentiation, with the PM process. A framework representing differentiation in the construction industry is proposed in this study....
Effect of partner fit in international construction joint ventures
Ozorhon, Beliz; Arditi, David; Dikmen Toker, İrem; Birgönül, Mustafa Talat (American Society of Civil Engineers (ASCE), 2008-01-01)
Joint ventures have been an important research topic over the last few decades primarily because of their importance as a strategic alternative in global competition. Due to the inherent complexities of international joint ventures (IJVs), involving a mixture of different managerial systems, attitudes, and business strategies, such entities are very difficult to manage. In this study, the effect of strategic, organizational, and cultural fit between IJV partners and of interpartner relations on IN performan...
Citation Formats
P. Keskinocak and S. Savaşaneril Tüfekci, “Collaborative procurement among competing buyers,” NAVAL RESEARCH LOGISTICS, pp. 516–540, 2008, Accessed: 00, 2020. [Online]. Available: