IDEAS home Printed from https://ideas.repec.org/a/wsi/ijitdm/v09y2010i01ns0219622010003671.html
   My bibliography  Save this article

From Choice Of Procurement Strategy To Supply Network Configuration: An Evolutionary Approach

Author

Listed:
  • YIFENG ZHANG

    (Department of Management Information Systems, University of Illinois at Springfield, One University Plaza, Springfield, IL 62703, USA)

  • SIDDHARTHA BHATTACHARYYA

    (Department of Information and Decision Sciences, University of Illinois at Chicago, 601, South Morgan Street, Chicago, IL 60607, USA)

  • XIAOMING LI

    (Department of Business Administration, Tennessee State University, 3500 John A Merritt Blvd, Nashville, TN 37209, USA)

Abstract

This study examines the complex and evolutionary nature of supply network configuration. Taking a bottom-up approach, we examine how supply network configuration at the macro-level evolves as a result of individual retailers' dynamic choice of procurement strategies at the micro-level. Employing agent-based modeling, we focus on the effects of switch cost and distributors' ordering policy on the evolution of supply network configuration. Our results show that (1) supply networks tend to evolve into a set of separate supply chains when switch cost is high and into an integrated network when switch cost is low, (2) a responsive ordering policy adopted by distributors is more conducive to the integrated network configuration than a non-responsive policy, and (3) lack of coordination among retailers in their dynamic choice of procurement strategies hurts not only the overall system performance, but also retailers themselves. More importantly, our study demonstrates the capabilities of agent-based modeling as a methodology for researching complex supply network issues.

Suggested Citation

  • Yifeng Zhang & Siddhartha Bhattacharyya & Xiaoming Li, 2010. "From Choice Of Procurement Strategy To Supply Network Configuration: An Evolutionary Approach," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 9(01), pages 145-173.
    • Handle: RePEc:wsi:ijitdm:v:09:y:2010:i:01:n:s0219622010003671
    DOI: 10.1142/S0219622010003671
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219622010003671
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219622010003671?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jafarian, Ahmad & Rabiee, Meysam & Tavana, Madjid, 2020. "A novel multi-objective co-evolutionary approach for supply chain gap analysis with consideration of uncertainties," International Journal of Production Economics, Elsevier, vol. 228(C).
    2. Heng Du & Tiaojun Xiao, 2019. "Pricing Strategies for Competing Adaptive Retailers Facing Complex Consumer Behavior: Agent-based Model," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(06), pages 1909-1939, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijitdm:v:09:y:2010:i:01:n:s0219622010003671. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitdm/ijitdm.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.