We examine how financial constraints in portfolios of suppliers affect cash holdings at the level of the customer. Utilizing a data set of private and public French companies and their suppliers, we show that customers rely on their financially unconstrained suppliers to provide them with backup...

We examine how financial constraints in portfolios of suppliers affect cash holdings at the level of the customer. Utilizing a data set of private and public French companies and their suppliers, we show that customers rely on their financially unconstrained suppliers to provide them with backup...

We develop a structural demand model that endogenously captures the effect of out-of-stocks on customer choice by simulating a time-varying set of available alternatives. Our estimation method uses store-level data on sales and partial information on product availability. Our model allows for...

Financial and operational risk management are central concepts at the intersection of finance, operations, and commodity risk management. Prior research has examined the effects of either financial or operational risk management, yet evidence on the implications for a joint risk management...

Problem definition: What role do suppliers play in insuring buyers' access to liquidity? We study how suppliers alleviate credit constraints for their downstream partners, and the role this type of liquidity insurance plays in buyers' cash management policies. Academic/Practical relevance:...

This paper studies a dynamic procurement and production process used by many automakers, and BMW in particular. An automaker (she) must procure components from an upstream supplier (him) to assemble cars in a given production period. Demand for cars is stochastic and retail prices are...

We develop a structural demand model that captures the effect of out-of-stocks on customer choice. Our estimation method uses store-level data on sales and partial information on product availability. Our model allows for flexible substitution patterns which are based on utility maximization...

Financial and operational supply chain risks are often managed independently, by managers in different business units and with widely-varying viewpoints. Yet, differences in incentives often result in a mismatch in priorities and processes. In 2008, BMW established the Raw Material Management...