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 | |
| 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
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Supply chain outsourcing under exchange rate risk and competition. / Liu, Zugang; Nagurney, Anna.
In: Omega, Vol. 39, No. 5, 01.10.2011, p. 539-549.Research output: Contribution to journal › Article
TY - JOUR
T1 - Supply chain outsourcing under exchange rate risk and competition
AU - Liu, Zugang
AU - Nagurney, Anna
PY - 2011/10/1
Y1 - 2011/10/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=79551688592&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=79551688592&partnerID=8YFLogxK
U2 - 10.1016/j.omega.2010.11.003
DO - 10.1016/j.omega.2010.11.003
M3 - Article
AN - SCOPUS:79551688592
VL - 39
SP - 539
EP - 549
JO - Omega
JF - Omega
SN - 0305-0483
IS - 5
ER -