A study on procurement strategy and its antecedents

• Main Authors: Meng-Chun Tsai, 蔡錳珺
• Other Authors: 謝焸君
• Format: Others
• Language: en_US
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/10749156745904489613

碩士 === 國立中興大學 === 科技管理研究所 === 98 === Nowadays, the pressure of global competition and customers’ powers has led many companies to seek for proper strategies to solve various upcoming problems. Consignment stock and competitive bidding are two outsourcing strategies that are commonly applied to control the inventory in the Supply Chain Management. In addition, because of demand uncertainty and variability, firms attempt to adopt the optimal demand switching ratio through the risk-pooling effect in order to decrease total demand’s variability and achieve the goal of inventory reduction. Based on the literature review, this research tried to explore the effect of demand switching on selecting outsourcing strategies. The results indicated that demand switching could decline the variability, however, the cost from switching increase. In fact, there were four conditions of the chancing outsourcing strategies. Only product demand switch from consignment to competitive bidding was decreasing; other three conditions were increasing with demand switching. Therefore, the companies not only consider the price of procurement, but also concern the cost of demand switching when deciding outsourcing strategies. The cost model of this research is a tool for managers to measure the total cost when choosing strategies from consignment stock and competitive bidding, moreover, to determine the optimal condition. This study will also be the foundation to investigate the relationship between outsourcing strategies and cost structure for the future researches.