Strategic Supplier Dynamics and Decision-making in Supply Chain Management: Exploring Market Segmentation, Copycatting, and Encroachment
Abstract
In this dissertation, we explore the intricate dynamics of supplier relationships and strategic decision-making within the realm of Operations Management, focusing on the critical aspects of supply chain management. The research consists of three papers, each offering unique insights into supplier dynamics and their implications for manufacturers and businesses.
The first paper presents a robust framework for joint learning of consumer preferences and market segmentation. Leveraging ideas from machine learning and mathematical programming, this framework efficiently segments the customer base and accurately learns preferences without compromising consumer privacy. By optimizing assortment decisions, this approach maximizes profits and offers superior prediction accuracy, enhancing marketing strategies in dynamic market scenarios.
The second paper delves into the pressing issue of supplier copycatting, where suppliers imitate original products, posing challenges to manufacturers and suppliers worldwide. Employing a game-theoretic approach, the research analyzes strategic responses of manufacturers and suppliers to cope with this emerging trend. The findings reveal the impacts of quality improvements and potential shifts in outsourcing decisions, providing valuable insights for managing supplier relationships and mitigating copycatting risks.
The third paper investigates the ramifications of supplier encroachment, as upstream suppliers venture into direct sales and compete with manufacturers. Through a two-period game-theoretic model, the research examines optimal outsourcing strategies for manufacturers while considering the potential repercussions faced by encroaching suppliers. This comprehensive analysis sheds light on the dynamics of supplier- manufacturer collaborations, highlighting the importance of trust and commitment in maintaining successful partnerships.
Overall, this dissertation contributes valuable and comprehensive insights to the field of Operations Management. Employing a multi-method approach, we delve into supplier dynamics and decision-making, offering robust strategies and solutions to enhance supply chain efficiency and competitiveness. By addressing challenges such as consumer preference learning, supplier copycatting, and supplier encroachment, this research contributes to the growing body of knowledge in Operations Management and provides actionable guidance for businesses to thrive in the dynamic supply chain environments.