%0 Journal Article %T Outsourcing through Three-dimensional Competition %J International Journal of Engineering %I Materials and Energy Research Center %Z 1025-2495 %A Fakhrzad, M.B. %D 2014 %\ 12/01/2014 %V 27 %N 12 %P 1863-1871 %! Outsourcing through Three-dimensional Competition %K Supply chain %K Competition %K Outsourcing %R %X In this paper, we study an outsourced supply chain consisting of one buyer and two suppliers in which the buyer outsources manufacturing of a physical product to two competing suppliers. The suppliers compete for the buyers' demands share, and the buyer allocates the demands to the competing suppliers based on three-dimensional allocation functions. We consider two certain types of allocation function which depend on price, service level and product quality level. They include the exponential allocation function and the Cobb-Douglas allocation function. A three-stage game-theoretic framework is presented to derive the equilibrium values. Since the problem lacks a closed-form solution, numerical studies are conducted over a wide range of some key parameters. %U https://www.ije.ir/article_72431_20e7d0df66520f5e9a9bc5f16a35fd3b.pdf