Supply Disruptions, Asymmetric Information, and a Backup Production Option

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Zhibin (Ben) Yang; Göker Ayd{\i}n; Volodymyr Babich; Damian R. Beil;
  • Journal: Management Science, volume 55, issue 2 February, pages 192-209
  • Related identifiers: doi: 10.1287/mnsc.1080.0943
  • Subject: supply risk, mechanism design, contract, nondelivery penalty
    acm: ComputerApplications_COMPUTERSINOTHERSYSTEMS

We study a manufacturer that faces a supplier privileged with private information about supply disruptions. We investigate how risk-management strategies of the manufacturer change and examine whether risk-management tools are more or less valuable in the presence of su... View more
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