Discount Pricing Model Based On Controllable Lead-time For OEM

With the increasing important situation of production and coordination status,how to carry on the reasonable production decision according to their own conditions is an important problem that the OEMs have to face with.Reasonable production decision can not only help contractors to improve the business income,but also can bring stable relationship for the OEMs.Outsourcing strategy mainly deal with the similar condition of production decision,and as an important factor of production decision,lead time is becoming more and more significant by academic researchers.The thesis proposed three discount pricing models with the consideration of the lead time.One was with a single OEM and a single manufacturer,and the others were with a single OEM and two manufacturers under the resource constraints or the preparation time.The OEM could get more profit when the lead-time was less than a certain value with no constraints.Under the condition of the resources constraint or the preparation time,the OEM could get most profit with the certain lead-time with the proper discount.The thesis enriched the outsourcing theory related to the lead time.With considerable bargaining power of the OEMs production strategy innovation,this thesis helps to solve large OEM companies,which can select the price discount strategy according to the actual situation.The good academic perspective and practical value was shown.