Managing Opportunistic Supplier Product Adulteration: Deferred Payments, Inspection, and Combined Mechanisms

Published Online:https://doi.org/10.1287/msom.1110.0366

References

  • Aydın G., Babich V., Beil D. R., Yang Z., Kouvelis P., Boyabatli O., Dong L., Li R. Decentralized supply risk management. Handbook of Integrated Risk Management in Global Supply Chains (2012) (John Wiley & Sons, New York) 389–424Google Scholar
  • Babich V., Tang C. S. Managing opportunistic supplier product adulteration: Deferred payments, inspection, and combined mechanisms. (2011) . Extended technical report, McDonough School of Business, Georgetown University, Washington, DCGoogle Scholar
  • Babich V., Aydın G., Brunet P.-Y., Keppo J., Saigal R., Gurnani H., Mehrotra A., Ray S. Risk, financing, and the optimal number of suppliers. Managing Supply Disruptions (2012) (Springer-Verlag, London) 195–240CrossrefGoogle Scholar
  • Baiman S., Fischer P. E., Rajan M. V. Information, contracting, and quality costs. Management Sci. (2000) 46(6):776–789LinkGoogle Scholar
  • Balachandran K. R., Radhakrishnan S. Quality implications of warranties in a supply chain. Management Sci. (2005) 51(8):1266–1277LinkGoogle Scholar
  • Brunet P.-Y., Babich V. Inventory of cash-constrained firms and the option to acquire future financing. (2007) . Working paper, University of Michigan, Ann ArborGoogle Scholar
  • Brunet P.-Y., Babich V. Signaling manufacturer's private information through operational decisions and trade credit. (2009) . Working paper, University of Michigan, Ann ArborGoogle Scholar
  • Chao G. H., Iravani S. M. R., Savaskan R. C. Quality improvement incentives and product recall cost sharing contracts. Management Sci. (2009) 55(7):1122–1138LinkGoogle Scholar
  • Fairclough G. How Heparin maker in China tackles risks. Wall Streeet Journal (2008) March 10). http://online.wsj.com/article/SB120511367737423565.htmlGoogle Scholar
  • Giannetti M., Burkart M., Ellingsen T. What you sell is what you lend? Explaining trade credit contracts. Rev. Financial Stud. (2011) 24(4):1261–1298CrossrefGoogle Scholar
  • Gupta D., Wang L. A stochastic inventory model with trade credit. Manufacturing Service Oper. Management (2009) 11(1):4–18LinkGoogle Scholar
  • Klapper L., Laeven L., Rajan R. Trade credit contracts. (2010) . Policy Research Working Paper 5328, The World Bank, Washington, DC. http://www-wds.worldbank.org/Google Scholar
  • Kouvelis P., Zhao W. Supply chain coordination with financial constraints and bankruptcy costs. (2009) . Working paper, Washington University in St. Louis, St. LouisGoogle Scholar
  • Lee T. K., Png I. P. L. The role of installment payments in contracts for services. RAND J. Econom. (1990) 21(1):83–99CrossrefGoogle Scholar
  • Lee Y. W., Stowe J. D. Product risk, asymmetric information, and trade credit. J. Financial Quant. Anal. (1993) 28(2):285–300CrossrefGoogle Scholar
  • Long M. S., Malitz I. B., Ravid S. A. Trade credit, quality guarantees, and product marketability. Financial Management (1993) 22(4):117–127CrossrefGoogle Scholar
  • Petersen M. A., Rajan R. G. The benefits of lending relationships: Evidence from small business data. J. Finance (1994) 49(1):3–37CrossrefGoogle Scholar
  • Petersen M. A., Rajan R. G. Trade credit: Theories and evidence. Rev. Financial Stud. (1997) 10(3):661–692CrossrefGoogle Scholar
  • Png I. P. L. (2010) . Private communication. National University of Singapore, SingaporeGoogle Scholar
  • Powell T. C. Total quality management as competitive advantage: A review and empirical study. Strategic Management J. (1995) 16(1):15–37CrossrefGoogle Scholar
  • Rajan R. G., Zingales L. What do we know about capital structure? Some evidence from international data. J. Finance (1995) 50(5):1421–1460CrossrefGoogle Scholar
  • Reyniers D. J., Tapiero C. S. Contract design and the control of quality in a conflictual environment. Eur. J. Oper. Res. (1995a) 82(2):373–382CrossrefGoogle Scholar
  • Reyniers D. J., Tapiero C. S. The delivery and control of quality in supplier-producer contracts. Management Sci. (1995b) 41(10):1581–1589LinkGoogle Scholar
  • Roth A. V., Tsay A. A., Pullman M. E., Gray J. V. Unraveling the food supply chain: Strategic insights from China and the 2007 recalls. J. Supply Chain Management (2008) 44(1):22–39CrossrefGoogle Scholar
  • Smith J. K. Trade credit and information asymmetry. J. Finance (1987) 42(4):863–872CrossrefGoogle Scholar
  • Starbird S. A. Penalties, rewards, and inspection: Provisions for quality in supply chain contracts. J. Oper. Res. Soc. (2001) 52(1):109–115CrossrefGoogle Scholar
  • Story L., Barboza D. Mattel recalls 19 million toys sent from China. New York Times (2007) August 15):A1Google Scholar
  • Tang C. S. Perspectives in supply chain risk management. Internat. J. Production Econom. (2006) 103(2):451–488CrossrefGoogle Scholar
  • Tang C. S. Making toys safe at Mattel. Internat. Commerce Rev. (2008) 8(1):48–55CrossrefGoogle Scholar
  • Vandenbosch M., Sapp S. Keep your suppliers honest. Wall Street Journal (2010) August 23):R8Google Scholar
  • Yang A., Birge J. How inventory is (should be) financed: Trade credit in supply chains with demand uncertainty and costs of financial distress. (2009) . Working paper, University of Chicago, ChicagoGoogle Scholar
  • Yang Z., Aydın G., Babich V., Beil D. R. Supply disruptions, asymmetric information, and a backup production option. Management Sci. (2009) 55(2):192–209LinkGoogle Scholar
  • Yang Z., Aydın G., Babich V., Beil D. R. Using a dual-sourcing option in the presence of asymmetric information about supplier reliability: Competition vs. diversification. Manufacturing Service Oper. Management (2012) 14(2):202–217LinkGoogle Scholar
  • Zhou J., Groenevelt H. Impacts of financial collaboration in a three-party supply chain. (2008) . Working paper, University of Rochester, Rochester, NYGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.