wow-inequalities/02-data/intermediate/wos_sample/9e2b0e82cb3215812c245adb3e37cb05-chen-ying-ju-and-se/info.yaml

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2023-09-28 14:46:10 +00:00
abstract: 'The reservation of goods to be produced in the micro, small, and medium
enterprises (MSME) sector, in the early years after India''s
independence, addressed the dual needs of development of the industrial
sector and production of goods. However, these industrial policies
created an incentive for firms to remain small so that they can continue
to avail of the benefits provided by the Government. On the positive
side, the MSMEs typically employ more labor intensive production
processes and consequently contribute significantly to the provision of
employment opportunities, generation of income, and poverty reduction.
But, on the negative side, the policies have also partly facilitated the
creation of a divide in terms of productivity between the MSMEs and
large sized firms. In particular the policy raises important questions
for a firm auctioning supply contracts among suppliers with a
significant cost differential. In this paper we propose an idea to
allocate supply contracts wherein a manufacturing firm partitions the
stochastic demand into mutually exclusive portions and awards each
portion to a different supplier. We characterize such an optimal
procurement mechanism when there are two types of suppliers and an
arbitrary number of demand portions. We show that the optimal
procurement may require the manufacturer to intentionally withhold some
demand portion, and this arises when one type of supplier is
considerably inefficient in serving a demand portion. We extend our
analysis to the cases with multiple types with two suppliers and two
types with multiple suppliers. The optimal partition is composed of at
most six contiguous demand portions, and it may include a detrimental
demand portion that only generates a negative expected payoff to both
supplier types. Our demand partitioning mechanism leads to a strictly
higher manufacturer''s expected payoff than the conventional
winner-take-all case unless one supplier type completely dominates the
other. We present numerical experiments that indicate when such a
mechanism holds the greatest advantage for the buyer.'
affiliation: 'Sohoni, MG (Corresponding Author), Indian Sch Business, Hyderabad, India.
Chen, Ying-Ju, Hong Kong Univ Sci \& Technol, Sch Business \& Management, Clear
Water Bay, Hong Kong, Peoples R China.
Chen, Ying-Ju, Hong Kong Univ Sci \& Technol, Sch Engn, Clear Water Bay, Hong Kong,
Peoples R China.
Seshadri, Sridhar, Univ Illinois, Gies Coll Business, Urbana, IL 61801 USA.
Sohoni, Milind G., Indian Sch Business, Hyderabad, India.'
author: Chen, Ying-Ju and Seshadri, Sridhar and Sohoni, Milind G.
author-email: milind\_sohoni@isb.edu
author_list:
- family: Chen
given: Ying-Ju
- family: Seshadri
given: Sridhar
- family: Sohoni
given: Milind G.
da: '2023-09-28'
doi: 10.1002/nav.21953
earlyaccessdate: NOV 2020
eissn: 1520-6750
files: []
issn: 0894-069X
journal: NAVAL RESEARCH LOGISTICS
keywords: demand partitioning; industrial policy; mechanism design; procurement
keywords-plus: INFORMATION; AUCTIONS; POLICIES
language: English
month: DEC
number: 8, SI
number-of-cited-references: '21'
orcid-numbers: 'Sohoni, Milind/0000-0002-5236-2375
Sohoni, Milind/0000-0003-0510-7109'
pages: 1037-1053
papis_id: a92970e60cbe833923d539fda80f999a
ref: Chen2021demandpartitioning
researcherid-numbers: 'Sohoni, Milind/E-4894-2015
chen, ying/HHS-8254-2022
Sohoni, Milind/E-4894-2015'
times-cited: '2'
title: A demand partitioning framework to reserve production for small enterprises
2023-10-01 08:15:07 +00:00
type: article
2023-09-28 14:46:10 +00:00
unique-id: WOS:000586041700001
usage-count-last-180-days: '3'
usage-count-since-2013: '29'
volume: '68'
web-of-science-categories: Operations Research \& Management Science
year: '2021'