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the unbiased seller: the price decreases with the remaining inventory and increases with the time-to-go. Interestingly, we …
Persistent link: https://www.econbiz.de/10013235251
Prior literature has shown that, for a symmetric information setting, supplier encroachment into a reseller's market can mitigate double marginalization and benefit both the supplier and the reseller. This paper extends the investigation of supplier encroachment to the environment where the...
Persistent link: https://www.econbiz.de/10013066475
We propose a behavioral theory to predict actual ordering behavior in multi-location inventory systems. The theory … experimentally test the proposed theory in both the centralized and decentralized inventory structures using subjects motivated by … substantial nancial incentives. Consistent with the proposed theory, actual orders exhibit the so-called pull-to-center bias and …
Persistent link: https://www.econbiz.de/10014207146
Unauthorized subcontracting — when suppliers outsource part of their production to a third party without the retailer's consent — has been common practice in the apparel industry and is often tied to non-compliant working conditions. Because retailers are unaware of the third party, the...
Persistent link: https://www.econbiz.de/10014031909
We develop a theory that shows signaling a firm's fundamental quality (e.g., its operational capabilities) to lenders … through inventory transactions to be more efficient---it leads to less costly operational distortions---than signaling through … costs, market size, and inventory salvage value. Signaling through inventory being only tenable when inventory transactions …
Persistent link: https://www.econbiz.de/10014033980
An important observation in supply chain management, known as the bullwhip effect, suggests that demand variability increases as one moves up a supply chain. In this paper we quantify this effect for simple, two-stage supply chains consisting of a single retailer and a single manufacturer. Our...
Persistent link: https://www.econbiz.de/10009214194
median of inventory holding periods were reduced from 96 days to 81 days. The average rate of inventory reduction is about 2 …% per year. The greatest reduction was found for work-in-process inventory, which declined by about 6% per year. Finished …
Persistent link: https://www.econbiz.de/10009218308
Assigning products to and retrieving them from proper storage locations are crucial decisions in minimizing the operating cost of a unit-load warehouse. The problem becomes intractable when the warehouse faces variable supply and uncertain demand in a multiperiod setting. We assume a...
Persistent link: https://www.econbiz.de/10010990519
operational measures. We model a manufacturing firm that can purchase BI insurance, invest in inventory, and avail of emergency … optimal insurance deductible and coverage limit as well as the optimal inventory level. We prove that insurance and …, insurance can increase the marginal value of inventory and can increase the overall value of emergency sourcing. We also find …
Persistent link: https://www.econbiz.de/10010990593
This paper develops an order-up-to S inventory model that is designed to handle multiple items, resource constraints … complex, real-world inventory control problems. …
Persistent link: https://www.econbiz.de/10009191183