A quantitative analysis for the degree of supplier's involvement under market uncertainty

In this paper, we provide a quantitative analysis for the degree of supplier's involvement under market uncertainty. Taking the proportion of tasks assumed by supplier as an index of the involvement extent, we seek this optimized extent from supplier's point of view. Our analysis shows that, for the supplier's involvement, its participation is restricted by two sides' relative marginal profit, development ability and market uncertainty of the new product. When supplier involved and shared some manufacturer' design task, it has a optimized proportion to choose, this proportion is positive relation to its marginal profit and technology development ability, negative relation to manufacturer's marginal profit and technology development ability, and negative relation to market success probability.