Design of Optimal Supply Chain Network under Two Competition Environments for a Proprietary Component Manufacturer

  • 蔡 佩珊

Student thesis: Doctoral Thesis

Abstract

In this study we examine the design of optimal supply chain network (SCN) for a proprietary component manufacturer (PCM) which has the capability of traversing two vertical-echelon markets in one supply chain via specializing in the industries with a specific proprietary component Our premise is that the manufacturer of proprietary components is often considered the main decider of the supply chain structures which dominates the design of its supply network as well as those of the relevant segments within the chain However the entities in such a position may not assure themselves of sustaining profitability whenever competition environments change Accordingly we develop mathematical models based on the game theory of Cournot and investigate the differences of the optimal strategies under the two independent structures We find that when an individual cost factor changes the profit composition as well as the overall margins will be influenced correspondingly It is essential for the PCM to consider the tradeoffs between leveraging the capability of vertical integrations and subcontracting the processes that barely make money when competition intensity varies Also we figure out that the PCM in the respective market structures will be recommended with similar SCNs although the profit-generation capability between the two models will be of diversity as the player in a monopoly will always have higher flexibility and benefits compared with that in a duopoly while all numerical sets are the same
Date of Award2020
Original languageEnglish
SupervisorWei-Shiun Chang (Supervisor)

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