IE interfaces (산업공학)

Korean Institute of Industrial Engineers (대한산업공학회)
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Component Outsourcing Contracts in a Two-Component Assembly System

두 가지 부품으로 구성된 조립시스템에서 부품 아웃소싱 계약에 대한 고찰

  • Kim, Eun-Gab (College of Business Administration, Ewha Womans University)
  • 김은갑 (이화여자대학교 경영대학)
  • Received : 2009.02.18
  • Accepted : 20090500
  • Published : 2009.06.01
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Abstract

This paper considers a two-component assembly system that makes different types of purchasing contracts by component type and studies the issue of coordinating those contracts. Acquisition of type 1 component is based on the long-term contract. In contrast, type 2 component is intermittently purchased under the sort-term contract. We identify the structural properties of the optimal short-term contract and investigate how the changes in system parameters affect the optimal performance. To provide managerial insights, we compare the short-term and long-term contracts for type 2 component and discuss the conditions that make the short-term contract preferable to the long-term contract. We also present a result which shows that coordinating the contracts of type 1 and type 2 components can be significantly profitable over uncoordinating them.

Keywords

References

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