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Article: Outsourcing a two-level service process
Title | Outsourcing a two-level service process |
---|---|
Authors | |
Keywords | Applications Business Services Industries Information Systems It Policy And Management Outsourcing Queues |
Issue Date | 2012 |
Publisher | INFORMS. The Journal's web site is located at http://mansci.pubs.informs.org |
Citation | Management Science, 2012, v. 58 n. 8, p. 1569-1584 How to Cite? |
Abstract | This paper studies outsourcing decisions for a two-level service process in which the first level serves as a gatekeeper for a second level of experts. The objective of the system operator (the client) is to minimize the sum of staffing costs, customer waiting costs, and mistreatment costs due to unsuccessful attempts by a gatekeeper to solve the customer's problem. The client may outsource all or part of the process to a vendor, and first-best contracts exist when the client outsources only gatekeepers or experts. When the client outsources the entire system as a two-level process, a client-optimal contract may not exist unless the exogenous system parameters satisfy a particular (and unlikely) coordination condition. In addition, optimal incentive-compatible contracts exist when the vendor's structure choice (one level or two levels) can deviate from the client's preference. Finally, we numerically examine how vendor structure choice and labor cost advantages influence the client's optimal outsourcing option. © 2012 INFORMS. |
Persistent Identifier | http://hdl.handle.net/10722/164754 |
ISSN | 2023 Impact Factor: 4.6 2023 SCImago Journal Rankings: 5.438 |
ISI Accession Number ID | |
References |
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Lee, HH | en_HK |
dc.contributor.author | Pinker, EJ | en_HK |
dc.contributor.author | Shumsky, RA | en_HK |
dc.date.accessioned | 2012-09-20T08:09:04Z | - |
dc.date.available | 2012-09-20T08:09:04Z | - |
dc.date.issued | 2012 | en_HK |
dc.identifier.citation | Management Science, 2012, v. 58 n. 8, p. 1569-1584 | en_HK |
dc.identifier.issn | 0025-1909 | en_HK |
dc.identifier.uri | http://hdl.handle.net/10722/164754 | - |
dc.description.abstract | This paper studies outsourcing decisions for a two-level service process in which the first level serves as a gatekeeper for a second level of experts. The objective of the system operator (the client) is to minimize the sum of staffing costs, customer waiting costs, and mistreatment costs due to unsuccessful attempts by a gatekeeper to solve the customer's problem. The client may outsource all or part of the process to a vendor, and first-best contracts exist when the client outsources only gatekeepers or experts. When the client outsources the entire system as a two-level process, a client-optimal contract may not exist unless the exogenous system parameters satisfy a particular (and unlikely) coordination condition. In addition, optimal incentive-compatible contracts exist when the vendor's structure choice (one level or two levels) can deviate from the client's preference. Finally, we numerically examine how vendor structure choice and labor cost advantages influence the client's optimal outsourcing option. © 2012 INFORMS. | en_HK |
dc.language | eng | en_US |
dc.publisher | INFORMS. The Journal's web site is located at http://mansci.pubs.informs.org | en_HK |
dc.relation.ispartof | Management Science | en_HK |
dc.subject | Applications | en_HK |
dc.subject | Business Services | en_HK |
dc.subject | Industries | en_HK |
dc.subject | Information Systems | en_HK |
dc.subject | It Policy And Management | en_HK |
dc.subject | Outsourcing | en_HK |
dc.subject | Queues | en_HK |
dc.title | Outsourcing a two-level service process | en_HK |
dc.type | Article | en_HK |
dc.identifier.email | Lee, HH: hhlee@hku.hk | en_HK |
dc.identifier.authority | Lee, HH=rp01556 | en_HK |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1287/mnsc.1110.1503 | en_HK |
dc.identifier.scopus | eid_2-s2.0-84865528752 | en_HK |
dc.identifier.hkuros | 208901 | en_US |
dc.relation.references | http://www.scopus.com/mlt/select.url?eid=2-s2.0-84865528752&selection=ref&src=s&origin=recordpage | en_HK |
dc.identifier.volume | 58 | en_HK |
dc.identifier.issue | 8 | en_HK |
dc.identifier.spage | 1569 | en_HK |
dc.identifier.epage | 1584 | en_HK |
dc.identifier.eissn | 1526-5501 | - |
dc.identifier.isi | WOS:000307528100009 | - |
dc.publisher.place | United States | en_HK |
dc.identifier.scopusauthorid | Lee, HH=35757543400 | en_HK |
dc.identifier.scopusauthorid | Pinker, EJ=6603181996 | en_HK |
dc.identifier.scopusauthorid | Shumsky, RA=6602407835 | en_HK |
dc.identifier.issnl | 0025-1909 | - |