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Supply chain outsourcing under exchange rate risk and competition

  • Liu, Zugang
  • Nagurney, Anna
Registered author(s):

    This paper studies the impacts of foreign exchange risk and competition intensity on supply chain companies who are involved in offshore-outsourcing activities. In particular, we develop a variational inequality model that considers firms' decision-making regarding pricing, offshore outsourcing, transportation, and in-house production under competition and foreign exchange uncertainty. We also use a series of simulation examples to answer questions regarding outsourcing and pricing strategies of supply chain firms with different risk attitudes, and explore numerically their associated profits and incurred risks.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(10)00152-0
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    Article provided by Elsevier in its journal Omega.

    Volume (Year): 39 (2011)
    Issue (Month): 5 (October)
    Pages: 539-549

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    Handle: RePEc:eee:jomega:v:39:y:2011:i:5:p:539-549
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