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Article: Inducing high service capacities in outsourcing via penalty and competition

TitleInducing high service capacities in outsourcing via penalty and competition
Authors
Keywordsmake-to-order
service quality
sojourn time
supplier-allocation
supplier-selection
Issue Date2011
PublisherTaylor & Francis Ltd. The Journal's web site is located at http://www.tandf.co.uk/journals/titles/00207543.asp
Citation
International Journal Of Production Research, 2011, v. 49 n. 17, p. 5169-5182 How to Cite?
AbstractIn this article, we consider a model of multiple make-to-order suppliers, which compete based on their promised sojourn times. A fixed penalty is imposed on the suppliers for failing the promised delivery time requirement at an agreed service level. The demand is allocated to the suppliers according to the promised sojourn times, using either supplier-selection (SS) approach or supplier-allocation (SA) approach as proposed in Benjaafar etal. (2007, Outsourcing via service competition, Management Science, 53 (2), 241-259). Their framework and results are then applied to obtain the competition outcome. It was found that the buyer can orchestrate the competition to induce the suppliers to offer lower promised sojourn times and select higher service capacities through restricting the suppliers to choose promised sojourn times above a certain level. The SS approach is also found to induce a better service quality than the SA approach. The role of the penalty level is then addressed. It was found that a higher penalty level induces a higher service capacity and is always beneficial to the buyer. © 2011 Taylor & Francis.
Persistent Identifierhttp://hdl.handle.net/10722/139348
ISSN
2015 Impact Factor: 1.693
2015 SCImago Journal Rankings: 1.445
ISI Accession Number ID
Funding AgencyGrant Number
GRF7017/07P
HKU CRCG
HKU
Funding Information:

Ching's research is supported in part by GRF grant no. 7017/07P, HKU CRCG Grants and HKU Strategic Research Theme Fund on Computational Sciences. The authors would like to thank the two anonymous referees and Professor Ling Li for their helpful comments and suggestions.

References

 

DC FieldValueLanguage
dc.contributor.authorChing, WKen_HK
dc.contributor.authorChoi, SMen_HK
dc.contributor.authorHuang, Xen_HK
dc.date.accessioned2011-09-23T05:48:35Z-
dc.date.available2011-09-23T05:48:35Z-
dc.date.issued2011en_HK
dc.identifier.citationInternational Journal Of Production Research, 2011, v. 49 n. 17, p. 5169-5182en_HK
dc.identifier.issn0020-7543en_HK
dc.identifier.urihttp://hdl.handle.net/10722/139348-
dc.description.abstractIn this article, we consider a model of multiple make-to-order suppliers, which compete based on their promised sojourn times. A fixed penalty is imposed on the suppliers for failing the promised delivery time requirement at an agreed service level. The demand is allocated to the suppliers according to the promised sojourn times, using either supplier-selection (SS) approach or supplier-allocation (SA) approach as proposed in Benjaafar etal. (2007, Outsourcing via service competition, Management Science, 53 (2), 241-259). Their framework and results are then applied to obtain the competition outcome. It was found that the buyer can orchestrate the competition to induce the suppliers to offer lower promised sojourn times and select higher service capacities through restricting the suppliers to choose promised sojourn times above a certain level. The SS approach is also found to induce a better service quality than the SA approach. The role of the penalty level is then addressed. It was found that a higher penalty level induces a higher service capacity and is always beneficial to the buyer. © 2011 Taylor & Francis.en_HK
dc.languageengen_US
dc.publisherTaylor & Francis Ltd. The Journal's web site is located at http://www.tandf.co.uk/journals/titles/00207543.aspen_HK
dc.relation.ispartofInternational Journal of Production Researchen_HK
dc.subjectmake-to-orderen_HK
dc.subjectservice qualityen_HK
dc.subjectsojourn timeen_HK
dc.subjectsupplier-allocationen_HK
dc.subjectsupplier-selectionen_HK
dc.titleInducing high service capacities in outsourcing via penalty and competitionen_HK
dc.typeArticleen_HK
dc.identifier.emailChing, WK:wching@hku.hken_HK
dc.identifier.authorityChing, WK=rp00679en_HK
dc.description.naturelink_to_subscribed_fulltext-
dc.identifier.doi10.1080/00207543.2010.524262en_HK
dc.identifier.scopuseid_2-s2.0-80051870014en_HK
dc.identifier.hkuros195450en_US
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-80051870014&selection=ref&src=s&origin=recordpageen_HK
dc.identifier.volume49en_HK
dc.identifier.issue17en_HK
dc.identifier.spage5169en_HK
dc.identifier.epage5182en_HK
dc.identifier.isiWOS:000299880500007-
dc.publisher.placeUnited Kingdomen_HK
dc.identifier.scopusauthoridChing, WK=13310265500en_HK
dc.identifier.scopusauthoridChoi, SM=26435077400en_HK
dc.identifier.scopusauthoridHuang, X=36617352800en_HK

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