Graham, Ian, Fiona O'Doherty, Alan C. McKinnon and Lynne Baxter

Hypergame analysis of the stability of relationships between computerbased logistics systems

International Journal of Production Economics, 26 (1-3): 310-303, (1992).

Copy reference link   DOI: 10.1016/0925-5273(92)90080-Q

Abstract: Current inventory management literature stresses the importance of cooperation between organisations in achieving and maintaining efficient supply relationships. This is in contrast to the conflict which has underpinned orthodox competitive supply. Management writers, notably Carlisle and Parker (1989), argue that companies should move towards a reduced supplier base, longer-term contracts and cooperation on operational issues. Their justification for this assertion is based on descriptions of successful cooperative supply relationships. This paper describes research being undertaken to use hypergame theory to analyse supply relationships and modify the control systems in use to make efficient cooperative supply stable and self-policing. The paper will discuss these issues and describe their application with reference to a study of the supply relationship between a large engineering company and their vendor of forgings.

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