Impact of contracting sequence on assembly systems with asymmetric production cost information

2021 ◽  
Author(s):  
Sihua Chen ◽  
Lei Xiao ◽  
Fei Lv
Keyword(s):  
Production Cost ◽  
Assembly Systems ◽  
Cost Information

scholarly journals To share or withhold? Contract negotiation in buyer–supplier–supplier triads

2019 ◽  
Vol 120 (1) ◽  
pp. 98-127
Author(s):  
Xu Chen ◽  
Xiaojun Wang ◽  
Xiaoqiang Zhu ◽  
Joseph Amankwah-Amoah
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Production Cost ◽  
Strategic Choices ◽  
Cost Information ◽  
Operational Decisions ◽  
Content Type ◽  
Contract Negotiation ◽  
Negotiation Strategies ◽  
Sharing Strategy

Purpose This paper seeks to fill the literature gap that lacks of exploring negotiation strategy with competing partners under asymmetric production-cost information. The purpose of this paper is to examine firms’ optimal contract negotiation strategies in buyer–supplier–supplier triads where there are concurrent negotiations between the retailer and two competing manufacturers. Design/methodology/approach The authors consider a two-echelon supply chain, in which the retailer has the option of segmented or unified negotiation policy, whereas the two competing manufacturers can withhold or share production cost information in the negotiation. Based on game theory, the authors derive the manufacturers’ optimal wholesale prices and the retailer’s optimal retail prices with eight possible scenarios. Optimal strategic choices and operational decisions are then explored through the comparative analysis of equilibriums of eight possible scenarios. Findings The authors find that the retailer will adopt different negotiation strategies depending on manufacturers’ decisions on sharing or withholding their production-cost information. When both manufacturers share their production-cost information, the retailer will adopt a unified negotiation policy. The high-efficiency manufacturer should adopt the same information-sharing strategy as the low-efficiency manufacturer in order to gain more profit. Originality/value The modelling helps to bring further clarity in supply chain contract negotiation by offering a conceptual framework to enhance our understanding of the effects of information-sharing strategy and negotiation policy in the negotiation process form the perspectives of all engaging parties. Managerial insights derived from the research will enable retailers and manufacturers to make informed and better strategic and operational decisions to improve market competitiveness.

Based on OLAP Realize Real-Time Integrated Analysis of the Underground Metal Mines Cost Information

2012 ◽  
Vol 214 ◽  
pp. 809-813
Author(s):  
Jun Guo ◽  
De Qing Gan ◽  
Jing Tan ◽  
Xu Long Yao
Keyword(s):  
Cost Analysis ◽  
Real Time ◽  
Production Cost ◽  
Integrated Analysis ◽  
Technology Study ◽  
Cost Information ◽  
Information Process ◽  
The Real ◽  
Metal Mines

Through OLAP technology study and solve the data issues during the real-time integrated of cost information process. Using OLAP technology does classified and sequenced analyses on mines production cost multi-dimensionally and multi-angle computationally. It is carried the deep study that the application of OLAP theory and technology in underground metal mines cost analysis field, and meanwhile the relative OLAP modeling is put forward.

Option contract design for supply chains under asymmetric cost information

Kybernetes ◽  
2019 ◽  
Vol 48 (5) ◽  
pp. 835-860 ◽  
Author(s):  
Xue Chen ◽  
Bo Li ◽  
Simin An
Keyword(s):  
Supply Chain ◽  
Production Cost ◽  
Production Costs ◽  
Cost Information ◽  
Content Type ◽  
Option Contracts ◽  
Option Contract ◽  
Information Rent ◽  
Asymmetric Cost ◽  
Asymmetric Cost Information

Purpose A lack of visibility into the manufacturer’s production cost information impedes a retailer’s ability to maximize her own profits, especially when market demand is uncertain. The purpose of this paper is to investigate the use of an option contract within a one-period two-echelon supply chain in the presence of asymmetric cost information. Design/methodology/approach Based on the principal-agent model, the retailer, acting as a Stackelberg leader, offers a menu of option contracts to mitigate the risk of uncertain demand and reveal asymmetric production cost information. The optimal contract in asymmetric and symmetric information scenarios is derived. Finally, the impact of production costs on the optimal contracts and the actors’ profits is explored by numerical experiments. Findings By comparing the optimal equilibrium solutions in two scenarios, the authors show that asymmetric cost information has a large impact on the optimal option contract and profits. In addition, information rent is affected by the type differential. The results prove that the level of information asymmetry plays a vital role in option contracts and profits. Originality/value Different from the existing literature on private demand information, this paper considers a supply chain with asymmetric cost information in the context of option contracts. Interestingly, not only the production cost but also the probability of a low production cost can affect the option strike price. In addition, from the perspective of the manufacturer, a high cost does not always bring a high information rent. These findings can provide some guidance to decision-makers.

Agility in assembly systems: a comparison model

2017 ◽  
Vol 37 (4) ◽  
pp. 411-421 ◽  
Author(s):  
Luca Barbazza ◽  
Maurizio Faccio ◽  
Fabio Oscari ◽  
Giulio Rosati
Keyword(s):  
Production Cost ◽  
Model Complexity ◽  
Assembly System ◽  
Assembly Systems ◽  
Direct Production ◽  
Content Type ◽  
Independent Variables ◽  
Comparison Model ◽  
Definition Of ◽  
Quantitative Definition

Purpose This paper aims at analyzing different possible assembly systems, including innovative potential configurations such as the fully flexible assembly systems (FAS), by defining a novel analytical model that focuses on the concept of agility and its impact on the whole system performance, also evaluating the economic convenience in terms of the unit direct production cost. Design/methodology/approach The authors propose a comparison model derived by Newton’s second law, introducing a quantitative definition of agility (acceleration), resistance of an assembly system to any change of its operative state (inertia) and unit direct production cost (force). Different types of assembly systems (manual, flexible and fully FAS) are analyzed and compared using the proposed model, investigating agility, system inertia and their impact on the unit direct production cost. Findings The proposed agility definition and the proposed comparison model have been applied considering different sets of parameters as independent variables, such as the number of components to assemble (product model complexity) and the target throughput of the system. The main findings are a series of convenience areas which either, for a given target unit direct production cost (force), defines the most agile system to adopt or, for a given target agility (acceleration), defines the most economical system to adopt, as function of the independent variables. Originality/value The novelty of this work is, first, the analytical definition of agility applied to assembly systems and contextualized by means of the definition of the new comparison model. The comparison between different assembly systems on the basis of agility, and by using different sets of independent variables, is a further element of interest. Finally, the resulting convenience areas represent a desirable tool that could be used to optimally choose the most suitable assembly system according to one or more system parameters.

scholarly journals Rancang Bangun Aplikasi Informasi Biaya Produksi Berbasis Web Di PT.Bimasakti Karya Prima

2020 ◽  
Vol 6 (2) ◽  
pp. 177-186
Author(s):  
Sri Rahayu ◽  
Irma Kurnia Juliany ◽  
Duwi Lailatul Juniar
Keyword(s):  
Operating Systems ◽  
Research Method ◽  
Production Cost ◽  
Raw Materials ◽  
Current System ◽  
Production Costs ◽  
Cost Information ◽  
Application System ◽  
Web Based ◽  
A Company

PT.Bimasakti Karya Prima is a company engaged in manufacturing by producing "FANS Indonesia" shoes. Production is the process of converting raw materials to finished goods and adding value to a product. However, the current system is not yet fully able to help, because the making of the Consumption Sheet in the process of material detailing and the Costing process of shoes are on two devices with different operating systems, so the need to re-type the data on the Consumption Sheet in the costing process. The lack of available databases makes it difficult to update data and needs to replace one by one on each sheet. The purpose of this research is to design a web-based Production Cost Information Application, create a database in accordance with company needs that will facilitate data management production costs as well as integrating systems. The research method used is the method of data collection by observing, interviewing and studying literature. The results obtained from this study are a cost information application system that helps companies manage data. Starting from determining the specifications of components and materials for the production of shoes to the costing process.

Contracting and Coordination under Asymmetric Production Cost Information

2011 ◽  
Vol 21 (2) ◽  
pp. 345-360 ◽  
Author(s):  
Metin Çakanyıldırım ◽  
Qi Feng ◽  
Xianghua Gan ◽  
Suresh P. Sethi
Keyword(s):  
Production Cost ◽  
Cost Information
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