E3S Web Conf.
Volume 253, 20212021 International Conference on Environmental and Engineering Management (EEM 2021)
|Number of page(s)||4|
|Section||Intelligent Environmental Monitoring and Quality Technology Assessment|
|Published online||06 May 2021|
Analysis of Dual Sourcing Strategy with Quality Differentiated Suppliers
School of Business Administration Guangdong university of Finance and Economics Guangzhou, China
Corresponding author: email@example.com
Co-opetition supply chain is now the normal mode of development among enterprises. Based on the co-opetition supply chain, this paper designs a model to study the procurement strategy between OEM and two suppliers with supply uncertainty. We find that the profit increase of OEM is less affected by the wholesale price of a single supplier when purchasing through a single channel suppress. The dual purchase strategy has a great advantage, which leads to price war and reduces wholesale price. However, it is interesting to find that when the technical level of competitive suppliers is constantly improving, the order quantity of competitive suppliers is not always rising, but presents a single peak mode. This shows that OEM can deal with the threat of profit by reducing the orders to competitive suppliers.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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