ITR/PE: Supply Chain Coordination via Electronic Markets

Lehigh University, Bethlehem PA

Investigators

Abstract

This research examines electronic market mechanisms as a means of coordination and communication in the industrial supply chain. The research focuses on two main components: (1) innovative market mechanisms (exploring the theoretical and computational foundations for electronic market intermediaries in the supply chain, thereby deriving market mechanisms beyond price determination to include activity, resource, and structural coordination), and (2) focused industry survey (understanding the economic realities and key development trends in the industry by conducting in-depth field studies and empirical analyses). Insights developed from the research will lead to the development of efficient market mechanisms for supply chain coordination, and versatile market analysis tools. This research will extend the current literature in market microstructures, mechanism design, and supply chain coordination by (1) exploring the synergy between game theory, optimization, and computational economics approaches, (2) examining the roles of intermediaries in emerging supply chain markets, and their implications to market efficiency, and (3) suggesting engineering methodologies that convert market insights into implementable market instruments (e.g., contracts, protocols) and monitoring tools. The industry survey, to be conducted with McKinsey & Company, will document and classify emerging e-supply chain practices, and identify key issues relating to supply chain strategy in different industry sectors.