Supply chain outsourcing under exchange rate risk and competition

Zugang Liu; Anna Nagurney

doi:10.1016/j.omega.2010.11.003

Supply chain outsourcing under exchange rate risk and competition

Zugang Liu, Anna Nagurney

Penn State Hazleton

Research output: Contribution to journal › Article

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 language	English (US)
Pages (from-to)	539-549
Number of pages	11
Journal	Omega
Volume	39
Issue number	5
DOIs	https://doi.org/10.1016/j.omega.2010.11.003
State	Published - 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

Cite this

Liu, Z., & Nagurney, A. (2011). Supply chain outsourcing under exchange rate risk and competition. Omega, 39(5), 539-549. https://doi.org/10.1016/j.omega.2010.11.003

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Access to Document

10.1016/j.omega.2010.11.003