We study the demand forecast-sharing process between a buyer of customized production equipment and a set of equipment suppliers. Based on a large data collection we undertook in the semiconductor equipment supply chain, we empirically investigate the relationship between the buyer's forecasting...

Better-aligned operational and strategic plans and a better balance of supply and demand bring tangible benefits to firms. However, functional departments in firms often operate without vertical and horizontal alignment. The outcomes are delays and amplification of the information flow,...

Asset utilization is a major mid-term lever to increase shareholder value creation. Since rough-cut planning of capacity (dis-)investments is performed at the long-term level, detailed timing of adjustments remains for the mid-term level. In combination with capacity control measures, capacity...

A challenge for car manufacturers is to adjust rapidly and efficiently the production capacities with a volatile market demand and despite distant suppliers. In this paper, we consider a sales and operations planning problem based on the actual situation of Renault, a French global automobile...

Sales and operations planning (S&OP) is a key business process to match customer demand with supply capabilities in the medium term. Coordination mechanisms play a pivotal role within S&OP to align business strategy and operational planning as well as the involved business functions and supply...

We analyze how individuals make forecasts based on time-series data. Using a controlled laboratory experiment, we find that forecasting behavior systematically deviates from normative predictions: Forecasters overreact to forecast errors in relatively stable environments, but underreact to...

Does the payment scheme have an effect on inventory decisions in the newsvendor problem? Keeping the net profit structure constant, we examine three payment schemes that can be interpreted as the newsvendor's order being financed by the newsvendor herself (scheme O), by the supplier through...

We study the problem faced by a supplier deciding how to dynamically allocate limited capacity among a portfolio of customers who remember the fill rates provided to them in the past. A customer's order quantity is positively correlated with past fill rates. Customers differ from one another in...

The observed behavior of customers and managers often does not fit the assumptions of theoretical models used in the operations management (OM) literature. New research in behavioral OM is emerging to bridge the gap between traditional models and these newer observational findings. This work is...

Human beings are critical to the functioning of the vast majority of operating systems, influencing both the way these systems work and how they perform. Yet most formal analytical models of operations assume that the people who participate in operating systems are fully rational or at least can...