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Supply Chain Sourcing Game: A Negotiation Exercise
Author(s) -
Gumus Mehmet,
Love Ernie C.
Publication year - 2013
Publication title -
decision sciences journal of innovative education
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.52
H-Index - 19
eISSN - 1540-4609
pISSN - 1540-4595
DOI - 10.1111/j.1540-4609.2012.00368.x
Subject(s) - negotiation , supply chain , profit (economics) , computer science , supply chain management , variety (cybernetics) , operations management , class (philosophy) , process (computing) , business , process management , operations research , microeconomics , marketing , economics , artificial intelligence , mathematics , political science , law , operating system
This article introduces an exercise that simulates the negotiation process in a dynamic supply chain. The retailer and wholesaler roles are assigned to student groups who negotiate supply contracts in a number of rounds during a class period. Each group makes pricing, inventory, and ordering decision concurrently, and competes with others to achieve the highest profit. The exercise is easy to implement using pen and paper, and lends itself to a wide variety of negotiation environments.