We investigate the impact of power structures on the production and pricing strategies in a decentralized subcontracting assembly system consisting of two suppliers (key supplier and subcontractor) and one manufacturer (assembler). The key supplier, who is also the general contractor, negotiates with the manufacturer and assigns partial component production to the subcontractor. We first identify a single power regime (SPR), in which either the key supplier or the manufacturer determines the wholesale price or the order/production quantity. Under SPR, we consider three power structures, namely, KSA, KAS, and SKA. We find that the assembly system will substantially benefit under KAS. Results show that the subcontracting mechanism between the two suppliers can increase each firm’s profit and disperse the bargaining power. Such a decentralization of powers can weaken the horizontal decentralization between the suppliers and improve the system’s performance, thereby achieving a win–win situation. Furthermore, we extend our analysis to a dual power regime (DPR), in which the key supplier or the manufacturer decides on price and quantity. We show that the proposed assembly system performs optimally under DPR. Moreover, the system will benefit if the firm that is substantially near the end market makes the centralization decision. Compared with the classical pull and push contract model, the proposed assembly system provides the best performance under DPR.

中文翻译：

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分包装配系统中动力结构的影响

我们研究了权力结构对由两个供应商（主要供应商和分包商）和一个制造商（装配商）组成的分散分包装配系统中的生产和定价策略的影响。关键供应商也是总承包商，与制造商谈判并将部分组件生产分配给分包商。我们首先确定单一电源制度 (SPR)，其中主要供应商或制造商决定批发价格或订单/生产数量。在 SPR 下，我们考虑三种权力结构，即 KSA、KAS 和 SKA。我们发现装配系统将在 KAS 下大大受益。结果表明，两个供应商之间的分包机制可以增加每个厂商的利润，分散议价能力。这种权力下放可以削弱供应商之间的横向分权，提高系统性能，从而实现双赢。此外，我们将分析扩展到双电源制度 (DPR)，其中主要供应商或制造商决定价格和数量。我们表明，所提出的装配系统在 DPR 下表现最佳。此外，如果靠近终端市场的公司做出集中决策，该系统将受益。与经典的拉推合同模型相比，所提出的装配系统在 DPR 下提供了最佳性能。其中主要供应商或制造商决定价格和数量。我们表明，所提出的装配系统在 DPR 下表现最佳。此外，如果靠近终端市场的公司做出集中决策，该系统将受益。与经典的拉推合同模型相比，所提出的装配系统在 DPR 下提供了最佳性能。其中主要供应商或制造商决定价格和数量。我们表明，所提出的装配系统在 DPR 下表现最佳。此外，如果靠近终端市场的公司做出集中决策，该系统将受益。与经典的拉推合同模型相比，所提出的装配系统在 DPR 下提供了最佳性能。