The Strategic Role of Supplier Learning

Published Online:https://doi.org/10.1287/msom.2021.0285

References

  • Acemoglu D (2012) Introduction to economic growth. J. Econom. Theory 147(2):545–550.CrossrefGoogle Scholar
  • Adler PS, Clark KB (1991) Behind the learning curve: A sketch of the learning process. Management Sci. 37(3):267–281.LinkGoogle Scholar
  • Akan M, Ata B, Dana JD Jr (2015) Revenue management by sequential screening. J. Econom. Theory 159:728–774.CrossrefGoogle Scholar
  • Akcay Y, Gao L (2020) Sourcing for continuous supplier improvement. Working paper, University of Melbourne, Parkville, Victoria, Australia.Google Scholar
  • Alcacer J, Oxley J (2014) Learning by supplying. Strategic Management J. 35(2):204–223.CrossrefGoogle Scholar
  • Argote L, Epple D (1990) Learning curves in manufacturing. Science 247(4945):920–924.CrossrefGoogle Scholar
  • Arrow K (1962) The economic implications of learning by doing. Rev. Econom. Stud. 29(3):155–173.CrossrefGoogle Scholar
  • Athey S, Segal I (2007) Designing efficient mechanisms for dynamic bilateral trading games. Amer. Econom. Rev. 97(2):131–136.CrossrefGoogle Scholar
  • Athey S, Segal I (2013) An efficient dynamic mechanism. Econometrica 81(6):2463–2485.CrossrefGoogle Scholar
  • Babich V, Tang C (2012) Managing opportunistic supplier product adulteration: Deferred payments, inspection, and combined mechanisms. Manufacturing Service Oper. Management 14(2):301–314.LinkGoogle Scholar
  • Baiman S, Fischer P, Rajan M (2000) Information, contracting, and quality costs. Management Sci. 46(6):776–789.LinkGoogle Scholar
  • Balachandran KR, Radhakrishnan S (2005) Quality implications of warranties in a supply chain. Management Sci. 51(8):1266–1277.LinkGoogle Scholar
  • Baldwin R (2016) The Great Convergence (Harvard University Press, Cambridge, MA).CrossrefGoogle Scholar
  • Baloff N (1966) Startups in machine-intensive production systems. J. Industrial Engrg. 17(1):25.Google Scholar
  • Baron DP, Besanko D (1984) Regulation, asymmetric information, and auditing. RAND J. Econom. 15(4):447–470.CrossrefGoogle Scholar
  • Battaglini M (2005) Long-term contracting with Markovian consumers. Amer. Econom. Rev. 95(3):637–658.CrossrefGoogle Scholar
  • Bergemann D, Said M (2011) Dynamic Auctions (Wiley Encyclopedia of Operations Research and Management Science, Wiley, Hoboken, NJ).CrossrefGoogle Scholar
  • Bergemann D, Välimäki J (2010) The dynamic pivot mechanism. Econometrica 78(2):771–789.CrossrefGoogle Scholar
  • Bernstein F, Kök A (2009) Dynamic cost reduction through process improvement in assembly networks. Management Sci. 55(4):552–567.LinkGoogle Scholar
  • Besanko D, Doraszelski U, Kryukov Y, Satterthwaite M (2010) Learning-by-doing, organizational forgetting, and industry dynamics. Econometrica 78(2):453–508.CrossrefGoogle Scholar
  • Bolandifar E, Feng T, Zhang F (2017) Simple contracts to assure supply under noncontractible capacity and asymmetric cost information. Manufacturing Service Oper. Management 20(2):217–231.LinkGoogle Scholar
  • Boleslavsky R, Said M (2013) Progressive screening: Long-term contracting with a privately known stochastic process. Rev. Econom. Stud. 80(1):1–34.CrossrefGoogle Scholar
  • Bolton P, Dewatripont M (2005) Contract Theory (MIT Press, Cambridge, MA).Google Scholar
  • Börgers T (2015) An Introduction to the Theory of Mechanism Design (Oxford University Press, Cambridge, MA).CrossrefGoogle Scholar
  • Cachon GP (2003) Supply chain coordination with contracts. Handbook Oper. Res. Management Sci. 11:227–339.Google Scholar
  • Cakanyildirim M, Feng Q, Gan X, Sethi SP (2012) Contracting and coordination under asymmetric production cost information. Production Oper. Management 21(2):345–360.CrossrefGoogle Scholar
  • Chao GH, Iravani SMR, Savaskan RC (2009) Quality improvement incentives and product recall cost sharing contracts. Management Sci. 55(7):1122–1138.LinkGoogle Scholar
  • Chen F (2003) Information sharing and supply chain coordination. Handbook Oper. Res. Management Sci. 11:341–421.Google Scholar
  • Chen J, Hu Q, Song JSJ (2017) Contract types and supplier incentives for quality improvement. Preprint, submitted August 3, https://dx.doi.org/10.2139/ssrn.2608772.Google Scholar
  • Chen J, Wei H, Xie L (2022) Mitigating product quality risk under external financial pressure: Inspection, insurance, and cash/collateralized loan. Production Oper. Management 31(1):304–317.Google Scholar
  • Chen L, Lee HL (2017) Sourcing under supplier responsibility risk: The effects of certification, audit, and contingency payment. Management Sci. 63(9):2795–2812.LinkGoogle Scholar
  • Chen YJ (2011) Optimal selling scheme for heterogeneous consumers with uncertain valuations. Math. Oper. Res. 36(4):695–720.LinkGoogle Scholar
  • Chopra S, Reinhardt G, Mohan U (2007) The importance of decoupling recurrent and disruption risks in a supply chain. Naval Res. Logist. 54(5):544–555.CrossrefGoogle Scholar
  • Corbett C, Zhou D, Tang CS (2004) Designing supply contracts: Contract type and information asymmetry. Management Sci. 50(4):550–559.LinkGoogle Scholar
  • Corbett CJ, DeCroix GA, Ha AY (2005) Optimal shared-savings contracts in supply chains: Linear contracts and double moral hazard. Eur. J. Oper. Res. 163(3):653–667.CrossrefGoogle Scholar
  • Courty P, Li H (2000) Sequential screening. Rev. Econom. Stud. 67(4):697–717.CrossrefGoogle Scholar
  • Demsetz H (1968) Why regulate utilities? J. Law Econom. 11(1):55–65.CrossrefGoogle Scholar
  • Eppinger S, Ulrich K (2015) Product Design and Development (McGraw-Hill Higher Education, New York).Google Scholar
  • Eső P, Szentes B (2007) Optimal information disclosure in auctions and the handicap auction. Rev. Econom. Stud. 74(3):705–731.CrossrefGoogle Scholar
  • Fang X, Ru J, Wang Y (2014) Optimal procurement design of an assembly supply chain with information asymmetry. Production Oper. Management 23(12):2075–2088.CrossrefGoogle Scholar
  • Fine CH, Porteus EL (1989) Dynamic process improvement. Oper. Res. 37(4):580–591.LinkGoogle Scholar
  • Gao L (2015a) Collaborative forecasting, inventory hedging and contract coordination in dynamic supply risk management. Eur. J. Oper. Res. 245(1):133–145.CrossrefGoogle Scholar
  • Gao L (2015b) Long-term contracting: The role of private information in dynamic supply risk management. Production Oper. Management 24(10):1570–1579.CrossrefGoogle Scholar
  • Gao L (2023) Optimal incentives for salespeople with learning potential. Management Sci. 69(6):3285–3296.LinkGoogle Scholar
  • Gao L, Mishra BK (2019) The role of market evolution in channel contracting. Management Sci. 65(5):2432–2441.AbstractGoogle Scholar
  • Gao L, Guo L, Orsdemir A (2021) Dual-channel distribution: The case for cost information asymmetry. Production Oper. Management 30(2):494–521.CrossrefGoogle Scholar
  • Gao L, Li Z, Shou B (2014a) Information acquisition and voluntary disclosure in an export-processing system. Production Oper. Management 23(5):802–816.CrossrefGoogle Scholar
  • Gao L, Thomas DJ, Freimer MB (2014b) Optimal inventory control with retail pre-packs. Production Oper. Management 23(10):1761–1778.CrossrefGoogle Scholar
  • Gao L, Xu SH, Ball MO (2012) Managing an available-to-promise assembly system with dynamic short-term pseudo-order forecast. Management Sci. 58(4):770–790.LinkGoogle Scholar
  • Gao L, Shi J, Gorman MF, Luo T (2020) Business analytics for intermodal capacity management. Manufacturing Service Oper. Management 22(2):310–329.LinkGoogle Scholar
  • Gao L, Yang N, Zhang R, Luo T (2017) Dynamic supply risk management with signal-based forecast, multi-sourcing, and discretionary selling. Production Oper. Management 26(7):1399–1415.CrossrefGoogle Scholar
  • Golrezaei N, Nazerzadeh H, Randhawa R (2020) Dynamic pricing for heterogeneous time-sensitive customers. Manufacturing Service Oper. Management 22(3):562–581.LinkGoogle Scholar
  • Gray JV, Tomlin B, Roth AV (2009) Outsourcing to a powerful contract manufacturer: The effect of learning-by-doing. Production Oper. Management 18(5):487–505.CrossrefGoogle Scholar
  • Harris M, Raviv A (1978) Some results on incentive contracts with applications to education and employment, health insurance, and law enforcement. Amer. Econom. Rev. 68(1):20–30.Google Scholar
  • Harris M, Raviv A (1979) Optimal incentive contracts with imperfect information. J. Econom. Theory 20(2):231–259.CrossrefGoogle Scholar
  • Hatch NW, Mowery DC (1998) Process innovation and learning by doing in semiconductor manufacturing. Management Sci. 44(11-part-1):1461–1477.LinkGoogle Scholar
  • Hsieh CC, Liu YT (2010) Quality investment and inspection policy in a supplier–manufacturer supply chain. Eur. J. Oper. Res. 202(3):717–729.CrossrefGoogle Scholar
  • Hu B, Qi A (2018) Optimal procurement mechanisms for assembly. Manufacturing Service Oper. Management 20(4):655–666.LinkGoogle Scholar
  • Hwang J, Gao L, Jang W (2010) Joint demand and capacity management in a restaurant system. Eur. J. Oper. Res. 207(1):465–472.CrossrefGoogle Scholar
  • Iida T (2012) Coordination of cooperative cost-reduction efforts in a supply chain partnership. Eur. J. Oper. Res. 222(2):180–190.CrossrefGoogle Scholar
  • Jaber MY (2016) Learning Curves: Theory, Models, and Applications (CRC Press, Boca Raton, FL).CrossrefGoogle Scholar
  • Kakade SM, Lobel I, Nazerzadeh H (2013) Optimal dynamic mechanism design and the virtual-pivot mechanism. Oper. Res. 61(4):837–854.LinkGoogle Scholar
  • Kim SH, Netessine S (2013) Collaborative cost reduction and component procurement under information asymmetry. Management Sci. 59(1):189–206.LinkGoogle Scholar
  • Kuzu K, Gao L, Xu SH (2019) To wait or not to wait: The theory and practice of ticket queues. Manufacturing Service Oper. Management 21(4):853–874.LinkGoogle Scholar
  • Laffont J, Martimort D (2001) The Theory of Incentives: The Principal-Agent Model (Princeton University Press, Princeton, NJ).Google Scholar
  • Lee H, Whang S (2000) Information sharing in a supply chain. Internat. J, Manufacturing Tech. Management 1(1):79–93.CrossrefGoogle Scholar
  • Lewis T, Liu F, Song JSJ (2019) A dynamic mechanism for achieving sustainable quality supply. Preprint, submitted December 5, https://dx.doi.org/10.2139/ssrn.513103.Google Scholar
  • Li C (2013) Sourcing for supplier effort and competition: Design of the supply base and pricing mechanism. Management Sci. 59(6):1389–1406.Google Scholar
  • Li C (2020) Supplier competition and cost reduction with endogenous information asymmetry. Manufacturing Service Oper. Management 22(5):996–1010.LinkGoogle Scholar
  • Li C, Debo LG (2009) Second sourcing vs. sole sourcing with capacity investment and asymmetric information. Manufacturing Service Oper. Management 11(3):448–470.LinkGoogle Scholar
  • Li G, Rajagopalan S (1998) Process improvement, quality, and learning effects. Management Sci. 44(11-part-1):1517–1532.LinkGoogle Scholar
  • Li H, Zhang H, Fine CH (2013) Dynamic business share allocation in a supply chain with competing suppliers. Oper. Res. 61(2):280–297.LinkGoogle Scholar
  • Li T, Sethi SP, He X (2015) Dynamic pricing, production, and channel coordination with stochastic learning. Production Oper. Management 24(6):857–882.CrossrefGoogle Scholar
  • Li Z, Gao L (2008) The effects of sharing upstream information on product rollover. Production Oper. Management 17(5):522–531.CrossrefGoogle Scholar
  • Liu F, Lewis TR, Song JS, Kuribko N (2019) Long-term partnership for achieving efficient capacity allocation. Oper. Res. 67(4):984–1001.AbstractGoogle Scholar
  • Lobel I, Xiao W (2017) Optimal long-term supply contracts with asymmetric demand information. Oper. Res. 65(5):1275–1284.LinkGoogle Scholar
  • Loeb M, Magat WA (1979) A decentralized method for utility regulation. J. Law Econom. 22(2):399–404.CrossrefGoogle Scholar
  • Luo T, Gao L, Akçay Y (2016) Revenue management for intermodal transportation: The role of dynamic forecasting. Production Oper. Management 25(10):1658–1672.CrossrefGoogle Scholar
  • MacDuffie JP, Helper S (2007) Collaboration in supply chains: With and without trust. Heckscher C, Adler P, eds. The Firm as a Collaborative Community (Oxford University Press, Oxford, UK), 417–466.Google Scholar
  • Mazzola JB, McCardle KF (1997) The stochastic learning curve: Optimal production in the presence of learning-curve uncertainty. Oper. Res. 45(3):440–450.LinkGoogle Scholar
  • Myerson R (1991) Game Theory: Analysis of Conflict (Harvard University Press, Cambridge, MA).Google Scholar
  • Nikoofal ME, Gümüş M (2018) Quality at the source or at the end? Managing supplier quality under information asymmetry. Manufacturing Service Oper. Management 20(3):498–516.LinkGoogle Scholar
  • Nikoofal ME, Gümüş M (2019) Supply diagnostic incentives under endogenous information asymmetry. Production Oper. Management 28(3):588–609.CrossrefGoogle Scholar
  • Oh S, Özer Ö (2013) Mechanism design for capacity planning under dynamic evolutions of asymmetric demand forecasts. Management Sci. 59(4):987–1007.LinkGoogle Scholar
  • Pavan A (2007) Long-term contracting in a changing world. Preprint, submitted December 1, https://dx.doi.org/10.2139/ssrn.1620663.Google Scholar
  • Pavan A, Segal I, Toikka J (2014) Dynamic mechanism design: A myersonian approach. Econometrica 82(2):601–653.CrossrefGoogle Scholar
  • Pisano GP (1996) Learning-before-doing in the development of new process technology. Res. Policy 25(7):1097–1119.CrossrefGoogle Scholar
  • Quigley J, Walls L, Demirel G, MacCarthy BL, Parsa M (2018) Supplier quality improvement: The value of information under uncertainty. Eur. J. Oper. Res. 264(3):932–947.CrossrefGoogle Scholar
  • Syverson C (2011) What determines productivity? J. Econom. Literature 49(2):326–365.CrossrefGoogle Scholar
  • Tang Y, Gurnani H, Gupta D (2014) Managing disruptions in decentralized supply chains with endogenous supply reliability. Production Oper. Management 23(7):1198–1211.CrossrefGoogle Scholar
  • Taylor TA, Xiao W (2010) Does a manufacturer benefit from selling to a better-forecasting retailer? Management Sci. 56(9):1584–1598.LinkGoogle Scholar
  • Thompson P (2010) Learning by doing. Handbook Econom. Innovation 1:429–476.CrossrefGoogle Scholar
  • Tyre MJ, Orlikowski WJ (1993) Exploiting opportunities for technological improvement in organizations. Sloan Management Rev. 35(1):13–26.Google Scholar
  • Tyre MJ, Orlikowski WJ (1994) Windows of opportunity: Temporal patterns of technological adaptation in organizations. Organ. Sci. 5(1):98–118.LinkGoogle Scholar
  • Tyre MJ, Orlikowski WJ (1996) The episodic process of learning by using. Internat. J. Tech. Management 11(7–8):790–798.Google Scholar
  • Ulrich KT (2003) Product Design and Development (Tata McGraw-Hill Education).Google Scholar
  • Wang Y, Gilland W, Tomlin B (2010) Mitigating supply risk: Dual sourcing or process improvement? Manufacturing Service Oper. Management 12(3):489–510.LinkGoogle Scholar
  • Wei MM, Xu S, Yao T (2021) Strategic outsourcing contract participation and selection under cost uncertainty. Preprint, submitted June 12, http://dx.doi.org/10.2139/ssrn.3521837.Google Scholar
  • Wright TP (1936) Factors affecting the cost of airplanes. J. Aeronautics Sci. 3(4):122–128.CrossrefGoogle Scholar
  • Xiong H, Chen YJ (2013) Product line design with deliberation costs: A two-stage process. Decision Anal. 10(3):225–244.LinkGoogle Scholar
  • Xiong H, Chen YJ (2014) Product line design with seller-induced learning. Management Sci. 60(3):784–795.LinkGoogle Scholar
  • Xu S, Gao L, Ou J (2007) Service performance analysis and improvement for a ticket queue with balking customers. Management Sci. 53(6):971–990.LinkGoogle Scholar
  • Xu SH, Li Z (2007) Managing a single-product assemble-to-order system with technology innovations. Management Sci. 53(9):1467–1485.LinkGoogle Scholar
  • Yan X, Zhao H (2011) Decentralized inventory sharing with asymmetric information. Oper. Res. 59(6):1528–1538.LinkGoogle Scholar
  • Yang Z, Aydin G, Babich V, Beil D (2008) Supply disruptions, asymmetric information and a dual-sourcing option. Ann Arbor 1001:48109.Google Scholar
  • Yang Z, Aydin G, Babich V, Beil D (2009) Supply disruptions, asymmetric information, and a backup production option. Management Sci. 55(2):192–209.LinkGoogle Scholar
  • Yelle LE (1979) The learning curve: Historical review and comprehensive survey. Decision Sci. 10(2):302–328.CrossrefGoogle Scholar
  • Zhang F (2010) Procurement mechanism design in a two-echelon inventory system with price-sensitive demand. Manufacturing Service Oper. Management 12(4):608–626.LinkGoogle Scholar
  • Zhang H (2012) Analysis of a dynamic adverse selection model with asymptotic efficiency. Math. Oper. Res. 37(3):450–474.LinkGoogle Scholar
  • Zhang H, Kong G, Rajagopalan S (2018) Contract design by service providers with private effort. Management Sci. 64(6):2672–2689.LinkGoogle Scholar
  • Zhang H, Nagarajan M, Sošić G (2010) Dynamic supplier contracts under asymmetric inventory information. Oper. Res. 58(5):1380–1397.LinkGoogle Scholar
  • Zhang J, Cao Q, He X (2019) Contract and product quality in platform selling. Eur. J. Oper. Res. 272(3):928–944.CrossrefGoogle Scholar
  • Zhang W, Gao L, Zolghadr M, Jian D, Hafsi ME (2023) Dynamic incentives for sustainable contract farming. Production Oper. Management 32(7):2049–2067.CrossrefGoogle 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.