دانلود رایگان مقاله استراتژی های قیمت گذاری و منابع برای رقابت خرده فروشان در زنجیره های تامین تحت ریسک اختلال

Abstract

Supply disruption has become a critical concern for businesses around the world. The extant literature has dealt with the sourcing decision for a price-taking retailer. In this paper, we study how a retailer can use pricing decisions along with sourcing strategies under disruption risk while competing against another retailer with a more reliable supply chain. The retailer uses two decision levers namely, price adjustment, and split of order between reliable but expensive supplier and/or cheap but unreliable supplier to compete in the end market. Our analyses show that the competitive dynamics is shaped by the cost structure of the players, relative market potential and disruption risk. We find that the retailer focuses on reliable supplies with less price adjustment when it enjoys procurement cost advantage and higher market potential. On the other hand, as the procurement cost advantage and market potential shifts to the competitor; the retailer opts for cheaper but risky supplies and relies on drastic price adjustments. These results have important managerial implications and provide critical guidelines for retailers involved in pricing and sourcing decisions under the threat of supply disruptions.

8. Discussion and Conclusion

In this paper, we have studied the effect of competition on sourcing strategy of a retailer sourcing from costly but reliable domestic supplier and cheap but unreliable foreign supplier. We included the power dynamics that pans out in the system because of cheaper procurement cost. We prove the concavity of the profit functions in three strategies and then optimize it for different power structures.

We define supply chain disruption as a low frequency-high impact event that results in severance of one or more nodes of the supply chain leading to unavailability of services or goods. Events such as socio-political instability, civil unrest, natural hazards, terrorist attack, and epidemics can be classified under catastrophic risk (Kleindorfer & Saad, 2005). In our model, the foreign supplier has a ‘q’ probability of meeting such catastrophic events and will not supply anything in case of such events. Tang & Nurmaya Musa (2011), Wagner & Bode (2008), Jüttner (2005) and references therein provide a comprehensive list of supply disruption risks that affect firms. Natural disasters result in transportation delays, closure of ports, and closure of production facilities and so on. Many times, news agencies and weather channels assign probabilities or report the chance of occurrence of natural calamities; the news agencies assign a probability in case of any looming disaster that may affect a particular region. In terms of socio-economic and political disruptions, multiple groups and organisations such as Euromoney.com that publishes report on country-specific risk, The Economist publishes risk associated with countries, The PRS Group publishes monthly report on country-specific risk, and the World Bank publishes the ease of doing business that can be used as a proxy for reflection of uncertainty3 . The retailers need to draw a list of risk that affects their business with a foreign supplier and can calculate the probability of supply disruption (q) based on these reports and by compounding the impact of events that affect them and their suppliers