Supply chain outsourcing under exchange rate risk and competition

Zugang Liu, Anna Nagurney

Research output: Contribution to journalArticle

74 Scopus citations

Abstract

This paper studies the impacts of foreign exchange risk and competition intensity on supply chain companies who are involved in offshore-outsourcing activities. In particular, we develop a variational inequality model that considers firms decision-making regarding pricing, offshore outsourcing, transportation, and in-house production under competition and foreign exchange uncertainty. We also use a series of simulation examples to answer questions regarding outsourcing and pricing strategies of supply chain firms with different risk attitudes, and explore numerically their associated profits and incurred risks.

Original languageEnglish (US)
Pages (from-to)539-549
Number of pages11
JournalOmega
Volume39
Issue number5
DOIs
StatePublished - Oct 1 2011

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All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research
  • Information Systems and Management

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