Subject category:
Production and Operations Management
Published by:
Allied Business Academies
Revision date: 22-Oct-2018
Length: 6 pages
Data source: Published sources
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Abstract
The background is Xintang International Jeans and Textile City, the largest manufacturing base of jeans in China. The specific focus is on Xintang's inferior labor conditions. This case analyzes the problems through a novel perspective: to some extent poor labor conditions are driven by suppliers' fierce competition and buyers' unfair procurement practices which trend to shorten lead times and squeeze prices. Since suppliers in the buyerdriven value chains are teetering on cannibalistic competition, it is exceedingly difficult for them to simultaneously achieve both the competitive cost advantage and the humane working conditions. This case explicates how competition and cooperation strategies impact on the behavior of rational and self-interested suppliers within Xintang. The game theory models and analyses of this case study indicate that the cooperation efforts here may point the way out for struggling suppliers to achieve the tricky balance between low prices, short lead times, and stringent working conditions.
Subject category:
Production and Operations Management
Published by:
Allied Business Academies
Length: 8 pages
Data source: Published sources
About
Abstract
The background is Xintang International Jeans and Textile City, the largest manufacturing base of jeans in China. The specific focus is on Xintang's inferior labor conditions. This case analyzes the problems through a novel perspective: to some extent poor labor conditions are driven by suppliers' fierce competition and buyers' unfair procurement practices which trend to shorten lead times and squeeze prices. Since suppliers in the buyerdriven value chains are teetering on cannibalistic competition, it is exceedingly difficult for them to simultaneously achieve both the competitive cost advantage and the humane working conditions. This case explicates how competition and cooperation strategies impact on the behavior of rational and self-interested suppliers within Xintang. The game theory models and analyses of this case study indicate that the cooperation efforts here may point the way out for struggling suppliers to achieve the tricky balance between low prices, short lead times, and stringent working conditions.
Related
Subject category:
Production and Operations Management
Published by:
Allied Business Academies
Length: 8 pages
Data source: Published sources