Coordination of the Relationship Between Term Paper

Download this Term Paper in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Term Paper:

To answer the need for such information many industry sectors are stated by Aydinliyim (2007) to have "created portals where key information is shared amongst the members of the network." (p.1) This enables the members of the supply chain to work in a manner of cooperation geared toward reduction of not only their individual costs but the costs of the entire supply chain as well. The following diagram illustrates this concept as cited in the work of Aydinliyim (2007).

Figure 1

Total Online Supply Chain Portal

Source: Aydinliyim (2007)

The work of Griffin, Keskinocak and Savasaneril (nd) entitled: "Improving Supply Chain Performance Through Buyer Collaboration" states that in many companies today purchasing is conducted by "multiple functional divisions which either act independently or have minimal interaction with each other." (p.3)

Griffin, Keskinocak and Savasaneril states that there are three collaboration models: (1) no collaboration in which buyer divisions and suppliers trade through traditional sales channels in one-to-one transactions with no existing information flow; (2) internal collaboration in which functions divisions of a buyer collaborate internally; and (3) full collaboration in which a third party intermediary enables collaboration among different buyers and allows the participants to achieve benefits from both economies of scale and scope due to reduced fixed production and transportation costs. (nd, p. 3) These three models are shown in the following illustration labeled Figure 2.

Figure 2

Three Models of Collaboration Among Buyers and Buyers Divisions

Source: Griffin, Keskinocak and Savasaneril (nd)

The work of Xu and Beamon entitled: "Supply Chain Coordination and Cooperation Mechanisms: An Attribute-Based Approach" states that the importance of coordination in supply chain management (CSM) "cannot be overemphasized." (p. 4) Supply chain management is defined as "the planning and coordination of activities, from procurement to production, through...distribution." (Xu and Beamon, 2006, p.4) According to Xu and Beamon "Coordination mechanisms may be differentiated on the bases of four attributes as follows: (1) resource sharing structure, (2) decision style, (3) level of control, and (4) risk/reward sharing. (Xu and Beamon, 2006, p.5)

Given that the selection of a coordination mechanism is often based on minimizing relative costs, transaction cost theory (TCT) can be used to classify the three types of costs associated with coordination: coordination cost, operational risk cost, and opportunistic risk cost. This facilitates relating each coordination mechanism attribute to a type of cost." (p. 5) the resource sharing structure is stated to include the following: (1) No resource sharing; (2) Operational resource sharing; (3) tactical resource sharing; and (4) strategic resource sharing. (Xu and Beamon, 2006, p. 6)

Stated as two primary sources of operational risk cost are: (1) shirking of the cost that arise; and (2) refusal to adapt. (Xu and Beamon, 2006, p.6) Opportunistic risk cost is identified as the "cost associated with a lack of bargaining power or a loss of bargaining power stemming directly from the execution of a relationship." (Xu and Beamon, 2006, p.6)

There are stated to be two primary sources of opportunistic risk cost which are the two of: (1) power asymmetries -- when a small supplier enters negotiation with a more powerful firm; and (2) loss of resource control -- when new partners acquire new technology resulting in a threat being posed of a competitive nature to the original partner. (Xu and Beamon, 2006, p. 6) Xu and Beamon state that the selection of a coordination mechanism is a "tactical-strategic decision. As such, it is intended to govern the medium to long-term coordination structure between organizations. As operating environments change, so too much the corresponding coordination mechanism." ( p.11)

SUMMARY

It is clear from the brief review of literature in this work that supply chain management coordination between suppliers and buyers offers a great many advantages and that among these advantages reduction of cost of goods is of primary importance along with reductions in costs associated with shipping of supplies and inventory.

RECOMMENDATIONS

Arising from the brief review of literature in this research proposal is a recommendation that the study as proposed herein be conducted and specifically that the coordination of the suppliers and buyers in the supply chain be analyzed through use of the differential game theory methodology.

BIBLIOGRAPHY

Lavelle, SM (2006) Planning Algorithms. Cambridge University Press. Online available at: http://planning.cs.uiuc.edu/node710.htmlDockner, E., Jorgensen, S. And Long, NV (2000) Differential games in economics and management science. Cambridge University Press, 2000

Xu, Lei and Beamon, Benita M. (2006) Supply Chain Coordination and Cooperation Mechanisms: an Attribute-Based Approach. The Journal of Supply Chain Management Winter 2006.

Griffin, PM, Keskinocak,…[continue]

Some Sources Used in Document:

"emarket.pdf" 

Cite This Term Paper:

"Coordination Of The Relationship Between" (2009, June 04) Retrieved December 9, 2016, from http://www.paperdue.com/essay/coordination-of-the-relationship-between-74211

"Coordination Of The Relationship Between" 04 June 2009. Web.9 December. 2016. <http://www.paperdue.com/essay/coordination-of-the-relationship-between-74211>

"Coordination Of The Relationship Between", 04 June 2009, Accessed.9 December. 2016, http://www.paperdue.com/essay/coordination-of-the-relationship-between-74211

Other Documents Pertaining To This Topic

  • Relationship Between Self Esteem and Academic Intellectual Performance...

    Self-esteem and Academic/Intellectual Performance The research on the relationship between self-esteem and intellectual performance places has a lot of emphases on the gap of achievement, and is concerned with identifying factors that bring about differential intellectual results among other categories of gender. According to Antonio (1999) much focus has been given in eliminating the gap between intellectualachievement in the academic life of various male and female students across the world.

  • Police History Analyze the Relationship Between the

    Police History Analyze the relationship between the U.S. government and the policing organizations throughout the United States. The relationship between the U.S. government and policing organizations is loosely coordinated. This means that local agencies will determine what personnel they hire and how different resources are utilized. In some cases, the various departments work for specific entities such as: colleges / universities or transit departments. Evidence of this can be seen with observations

  • Italy u S Relationship the Relationship Between

    With the development of Rome and the Roman empire, Roman or Italian civilization spread throughout the Western world and into the Near East and North Africa. This is the very civilization that has remained today (Backen). Bibliography Backen, ALC. (1996). A Short History of Italy. http://www.giura.com/LaCentralItaly.htm BBC News. (2005). Italy Demands U.S. Punish Killers. BBC MMV. http://news.bb.co.uk/go/pr/fr/_/2/hi/europe/4328551.stm Drug Reform Coordination Network.(2002). Government Proposal Would Recriminalize Drug Possession, Including Marijuana. http://stopthedrugwar.org/chronicle/314/italy.html Ferrarini, GA. (2005). Corporate

  • Employee Theft and Relationship Between Pre Employment Background...

    relationship of employee theft and organizational objectives in Capstone. It has sources. Capstone Turbine Corporation, incorporated in 1988, is an organization that designs and creates turbines. They use the latest technology to create these turbines, as they are ones that are in demand for hybrid electric vehicles. Capstone Turbine Corporation develops, manufactures and markets microturbine technology, which is used in stationary distributed power generation applications. These include combined heat and power,

  • Relationship Maintenance Theories Have Been

    ). Although not all of Davis' relational maintenance strategies are communication based, many of them are primarily work-it-out and have-it-out but also reintegration ceremonies. Davis did not empirically test his observations. Braiker and Kelley (1979) were interested in understanding the role that conflict plays in relationship development. Employing a social exchange approach to relational maintenance, Braiker and Kelley conceptually defined maintenance as communication behaviors engaged in by members of the couple to

  • Customer Relationships Managing Relationships Is One of

    Customer Relationships Managing relationships is one of the critical success factors in managing sales. What form might relationships between selling organisations and customers take? There are many forms that relationships taken between selling organizations and customers. The most critical determinant of how the relationships and selling organizations is the business model of the company itself. For those companies whose business models are predicated on solving complex, intricate problems for customers, direct selling

  • Preferences in Learning Between American

    The trainer will then focus on the steps to be taken to develop new skills. For example, if the trainer wants to talk about motivating, leading, negotiating, selling or speaking, it is best to start with what the learners do well before showing some chart on Maslow's theory, Posner's leadership practices, or selling skills from some standard package that has been develop elsewhere. Many foreign trainers make grave errors


Read Full Term Paper
Copyright 2016 . All Rights Reserved