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In an upstream supply chain dedicated to the mass production of customized products, many sources create production instability: the level and structure of production in the final assembly line, variability of lead times, quality issues, packaging and loading constraints on transportation,...
Persistent link: https://www.econbiz.de/10010821238
In an upstream supply chain (USC) dedicated to the mass production of customized products, decentralized management is possible and performing in the steady state, if all the links that precede the final assembly line use periodic replenishment policies. These policies require appropriate safety...
Persistent link: https://www.econbiz.de/10010899747
Information transfer in the supply chain is complex and causes instability and unpredictable behavior, when information transferred is incomplete or incorrect. This instability is characterized by the Bullwhip Effect that represents concretization of entropy, namely the degree of disorder within...
Persistent link: https://www.econbiz.de/10011025782
According to the seminal Cost Recovery Theorem the revenues from congestion tolls pay for the capacity costs of an optimal-sized facility if capacity is perfectly divisible, and if user costs and capacity costs have constant scale economies. This paper extends the Theorem to long-run uncertainty...
Persistent link: https://www.econbiz.de/10010821262
Uncertainty about the level of demand is thought to influence irreversible capacity decisions. This paper examines some implications of the theory literature on this topic in an empirical study of the US cement industry between 1994 and 2006. Firms in this sector have the ability to deliver...
Persistent link: https://www.econbiz.de/10008793774