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A transaction cost approach to risk and uncertainty: subcontractors perspective
Jönköping University, School of Engineering, JTH, Industrial Engineering and Management. Jönköping University, School of Engineering, JTH. Research area Industrial Production.
2004 (English)In: Proceedings of the second world conference on POM and 15th Annual POM Conference, 2004Conference paper, Published paper (Other academic)
Abstract [en]

Many organisations cooperate with customers and integrate in various ways to create further operational synergy and to reduce uncertainty in demand. Supply chain integration offers the opportunity to capture synergies and there are many advantages for organisations that integrate into networks of customers (and suppliers). Sharing of information between organisations makes it possible for a supplier to obtain early signals about changing market conditions and thereby reduce its reliance on uncertain forecasts on the demand side to get a higher utilization of production facilities and lower safety stocks. However, there are also opposite drivers of uncertainties seen from a subcontractor’s perspective, e.g. smaller customer structure that increases dependency. The optimal strategy is to balance these drivers. The aim of this paper is to observe risk and uncertainties inside the transactional environment from a subcontractor’s perspective. The paper gives a theoretical framework and observations from industry

Place, publisher, year, edition, pages
2004.
National Category
Other Mechanical Engineering
Identifiers
URN: urn:nbn:se:hj:diva-5211OAI: oai:DiVA.org:hj-5211DiVA, id: diva2:36031
Available from: 2008-01-10 Created: 2008-01-10Bibliographically approved

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Dernroth, Jörgen

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