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Chinese Journal of Management Science ›› 2019, Vol. 27 ›› Issue (8): 151-161.doi: 10.16381/j.cnki.issn1003-207x.2019.08.015

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Outsourcing Strategies and Coordination in A Multi-Tier Supply Chain

WANG Xu-jin1, MA Cheng2   

  1. 1. School of Economics, Qingdao University, Qingdao 266071, China;
    2. School of Business, Qingdao University, Qingdao 266071, China
  • Received:2018-10-30 Revised:2019-03-09 Online:2019-08-20 Published:2019-08-27

Abstract: The outsourcing strategy issue is investigated in a multi-tier supply chain comprising of two original equipment manufacturers,a OEM contract manufacturer and a supplier. Based on Stackelberg game and Nash game,when the former original equipment manufacturer's outsourcing strategy is given,the latter one's optimal outsourcing strategy is presented through comparing to its profit functions under different outsourcing modes. It is identified that the latter one should adopt the same outsourcing strategy as the former one. Two-part pricing contract is designed for supply chain coordination so as to improve the whole supply chain competitiveness.

Key words: outsourcing strategy, two-part pricing mechanism, supply chain coordination, Stackelberg game, Nash game

CLC Number: