Invisible and Indispensable

Havens, Hilary

doi:10.1215/00982601-6988751

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2022

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“…For example, the supplier might be the only firm producing a particular part. According to The Economist in “Invisible but Indispensable” (Economist, 2009), supplier Mabuchi makes 90% of the micromotors used to adjust automobile rear‐view mirrors, and Tokyo Electron Ltd. makes 80% of the etchers used in LCD panel production. Computer manufacturers still rely on Intel for a large percentage of their microprocessor chips.…”

Section: Problem Descriptionmentioning

confidence: 99%

Should suppliers allow capacity transfers?

Khanjari

Duenyas

Iravani

2022

Production and Operations Management

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This research considers situations in which buyers pay to reserve their suppliers' capacity for future use. The study specifically explores whether suppliers should provide transfer rights, allowing buyers unable to use all of their reserved capacity to transfer the excess to another buyer, and whether they should charge a transfer fee. The study finds that, in most cases, the supplier maximizes financial outcomes when the buyer releasing the excess capacity keeps most of the retail‐level profit from the transfer and the supplier does not charge a transfer fee.

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Section: Problem Descriptionmentioning

confidence: 99%