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Full-Text Articles in Operations and Supply Chain Management
Procurement Fraud, Lisa Mcnamee
Procurement Fraud, Lisa Mcnamee
Economic Crime Forensics Capstones
The 2016 Global Economic Crime Survey conducted by PricewaterhouseCoopers LLP (2016), states that twenty-two percent of companies have experienced procurement fraud. The statistics have actually decreased since 2014 when twenty-seven percent of companies had experienced procurement fraud. However, procurement fraud is still one of the most costly fraudulent schemes. Despite the reduction, the Department of Defense continues to experience large procurement fraud cases, both in number and dollar value. A recent example is the Supreme Foodservice fraud case, which cost the Defense Logistics Agency $757 million dollars in fraudulent charges. (Jahner, 2014) The Department of Defense Office of Inspector General …
Can Contracts Replace Qualification In A Sourcing Process With Competitive Suppliers And Imperfect Information?, Yue Jin, Jennifer K. Ryan
Can Contracts Replace Qualification In A Sourcing Process With Competitive Suppliers And Imperfect Information?, Yue Jin, Jennifer K. Ryan
Department of Supply Chain Management and Analytics: Faculty and Staff Publications
This paper considers a manufacturer who outsources the production of a product to multiple competing suppliers, who differ in their cost structures and in their capabilities for producing high-quality products. The manufacturer must design the sourcing process to ensure that the selected supplier has sufficient quality capability, while encouraging competition among the suppliers. We develop and analyze a mathematical model of performance-based contracting, a sourcing method that is appropriate when the manufacturer has imperfect information regarding the suppliers’ costs and capabilities. We compare the performance of performance-based contracting with that of a two-stage sourcing process, an alternative sourcing method that …