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Selection Of Suppliers Considering The Learning Effect And Technology Improvement

Author

Listed:
  • WANZHEN HUANG

    (School of Mathematical Sciences, Lakehead University, Thunder Bay, Ontario, Canada P7B 5E1, Canada)

  • SHANLING LI

    (Faculty of Management, McGill University, 1001 Sherbrooke Street West, Montreal, Quebec, Canada, H3A 1G5, Canada)

  • DEVANATH TIRUPATI

    (Department of Management, University of Texas at Austin, TX 78712, USA)

Abstract

In this paper, we develop a model-based approach to examine the trade-offs between short- and long-term supplier contracts. Specifically, we consider learning and technology breakthroughs leading to cost improvements and develop cost models to characterize these effects. A deterministic environment is first considered in which demand can be constant or dynamic and learning effects and technology breakthroughs are dynamic. Then uncertainty in market prices is considered. Interesting managerial insights and strategies in selecting suppliers are discussed based on the analytical results of the models.

Suggested Citation

  • Wanzhen Huang & Shanling Li & Devanath Tirupati, 2003. "Selection Of Suppliers Considering The Learning Effect And Technology Improvement," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 71-92.
    • Handle: RePEc:wsi:ijitdm:v:02:y:2003:i:01:n:s0219622003000550
    DOI: 10.1142/S0219622003000550
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    Citations

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    Cited by:

    1. Gong, Qiguo & Lai, K.K. & Wang, Shouyang, 2008. "Supply chain networks: Closed Jackson network models and properties," International Journal of Production Economics, Elsevier, vol. 113(2), pages 567-574, June.
    2. Li, Shanling & Murat, Alper & Huang, Wanzhen, 2009. "Selection of contract suppliers under price and demand uncertainty in a dynamic market," European Journal of Operational Research, Elsevier, vol. 198(3), pages 830-847, November.

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