Effect of Transaction Cost and Coordination Mechanisms on the Length of the Supply Chain

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dc.contributor.advisorBailey, Joseph P.en_US
dc.contributor.advisorEvers, Philip T.en_US
dc.contributor.authorIyengar, Deepaken_US
dc.contributor.departmentDecision and Information Technologiesen_US
dc.contributor.publisherDigital Repository at the University of Marylanden_US
dc.contributor.publisherUniversity of Maryland (College Park, Md.)en_US
dc.date.accessioned2006-02-04T07:24:56Z
dc.date.available2006-02-04T07:24:56Z
dc.date.issued2005-12-05en_US
dc.description.abstractA drastic reduction in the cost of transmitting information has tremendously increased the °ow and availability of information. Greater availability of information increases the ¯rm's ability to manage its supply chain and, therefore, increases its operational performance. However, current literature is ambiguous about whether increased information °ows leads to either a reduction or increase in transaction cost, which enable supply chains to migrate towards more market-based transactions or hierarchal-based transactions. This research empirically demonstrates that the governance structure of the supply chains changes towards market-based transactions due to a lowering of transaction costs after 1987. Much of the results is based on the theory of Transaction Cost Economics (TCE) and the role of asset speci¯city, uncertainty, and frequency in determin- ing whether or not industries are moving towards markets or hierarchies. Unlike previous supply chain management literature that focuses on relatively short supply chains consisting of two or three supply chain members, Input-Output tables allow for analysis of supply chains with many more members. This paper uses the 1982, 1987, 1992, and 1997 U.S. Benchmark Input-Output tables published by the Bureau of Economic Analysis to analyze supply chains. In so doing, this dissertation not only provides insight into how supply chain structures are changing but also o®ers a sample methodology for other researchers interested in using Input-Output analysis for further supply chain management research. The second part of the dissertation focuses on looking at the e®ect of di®erent coordination mechanisms on supply chain length and supply chain performance using simulation. Three di®erent heuristics that model ordering policies are used to simulate coordination mechanisms. E±ciency is measured on the basis of minimized total net stock for each heuristic used. The results are checked for robustness by using four di®erent demand distributions. The results indicate that if a supply chain has minimized its net stock, then the heuristic used by various echelons in the supply chain need not be harmonized. Also, disintermediation helps in improving the performance of the supply chain.en_US
dc.format.extent865986 bytes
dc.format.mimetypeapplication/pdf
dc.identifier.urihttp://hdl.handle.net/1903/3178
dc.language.isoen_US
dc.subject.pqcontrolledBusiness Administration, Managementen_US
dc.subject.pqcontrolledBusiness Administration, Generalen_US
dc.subject.pquncontrolledTransaction Cost Economicsen_US
dc.subject.pquncontrolledInput-Output Analysisen_US
dc.subject.pquncontrolledSupply Chainen_US
dc.subject.pquncontrolledComputational Economicsen_US
dc.subject.pquncontrolledCoordinationen_US
dc.titleEffect of Transaction Cost and Coordination Mechanisms on the Length of the Supply Chainen_US
dc.typeDissertationen_US

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