Costs associated with purchasing often account for as much as 80% of the final product cost. This means that even a small decrease in these costs can have a significant impact on the bottom line. Procurement involves a constant tension between decreasing costs and establishing cooperative relationships. Throughout this course we will be grappling with these two opposing forces. We will be examining competitive and cooperative situations in a variety of supply chain settings in which performance depends on the interactions between a variety of decision makers, including customers, suppliers, competitors, and government regulators.
Spring 2017 Syllabus
Spring 2017 Schedule and Readings
This course covers a research topics in behavioral operations management and provides an overview of the area for Ph.D. students. Some of the topics covered include introduction to using laboratory experiments in operations, individual decisions, supply chain contracts, and behavioral marked design. The main goal of the course is to expose Ph.D. students to behavioral research and gain deeper understanding of the limitations of the standard operations management paradigm. The course will use a seminar format. Each session there will be assigned readings that we will discuss and critique. The main deliverable in the course will be a proposal for a laboratory study, including hypotheses, treatments and factors. Those who wish to pursue this research further will have an opportunity to conduct their studies with human subjects.
This course uses experiential hands-on learning to develop students' skills in effectively managing competitive and collaborative business situations. Students will learn: (1) Behavioral principles for effective bargaining. (2) The principles for designing, conducting, and participating in procurement auctions. (3) Methods for increasing cooperation and trust in competitive and collaborative settings. (4) Behavioral principles for designing trading.
Each topic in the course will be centered around a set of hands-on business simulations and case studies, in which students will take on the role of market participants working through a business problem.
These cases are freely available for use. If you would like to use any of these cases, email me and let me know. I will send you a teaching note and any other materials I have.
This platform was developed at the Smeal College of Business, Penn State University for the use with the Spectrum case study.
Log-in URL for Simulation participants (you will need a code to log in)