Performance Measurement and Incentive Systems in Purchasing (Dissertation)

Objective of this research project is the modeling of the purchasing process in an industrial company. This modeling shall include a principal agent model as well as the development of a simulation tool, taking into consideration more parameters and influences than can be included into the mathematical model. Focus of both the model and the simulation tool are influences of incentive payments granted to buyers on the buyer's performance and the alignment of their performance with company objectives as well as the resulting material costs and supplier relationships.