COMPENSATION AND BUY-BACK DEALS IN SUPPLY CHAINS: ANALYZING STRATEGIC DECISION AREAS BY USING AHP

  • Erik Hofmann University of St.Gallen
Keywords: Barter, Capital Investment Buy-Back, Industrial Contract, SCM, Analytic Hierarchy Process

Abstract

Practice reports suggest that the oldest form of trade – barter – is taking shape in supply chain management and production research. The paper highlights the phenomenon of countertrade in supply chains and takes first steps towards the conceptualization and explanation of a potentially powerful competitive tool–the analytic hierarchy process (AHP) – in practice.To test the construct, the model is applied to an illustrative case. The illustrations and the decision model shed light into why, and how, firms use countertrade in supply chains to support long-term business success. The identified forms of countertrade in supply chains exhibit different strengths with regard to a set of business objectives. The results contribute to the academic discussion of reciprocal agreements in supply chains as well as to the field of strategic production research in general. This paper should be of interest to practitioners as well as to academics specializing in supply chain management and strategic alliances in business networks.

Author Biography

Erik Hofmann, University of St.Gallen
Erik Hofmann (“Dr. rer. pol.”, University of Technology, Darmstadt, Germany) is vice president of the Chair for Logistics Management (LOG-HSG), an assistant professor at the University of St.Gallen, St.Gallen as well as a visiting professor at Dresden University of Technology, Germany. His primary research focuses on the intersections of logistics and supply chain management on the one side and finance- and performance-issues on the other side. This research stream encompasses performance measurement in supply chains, supply chain finance, mergers & acquisitions in logistics, and working capital management in supply chains. He has published in several logistics journals (e.g. Production Planning & Control, International Journal of Physical Distribution & Logistics Management or International Journal of Operations & Production Management). Erik Hofmann can be contacted at: erik.hofmann@unisg.ch
Published
2011-11-09
How to Cite
Hofmann, E. (2011). COMPENSATION AND BUY-BACK DEALS IN SUPPLY CHAINS: ANALYZING STRATEGIC DECISION AREAS BY USING AHP. Brazilian Journal of Operations & Production Management, 8, 17-49. Retrieved from https://bjopm.emnuvens.com.br/bjopm/article/view/V8N2A2
Section
Articles