It has been clearly established that a cost premium for responsiveness may be justified for profitable time-sensitive products, and that this cost premium may suffice to render production in a high-cost environment competitive. Time-insensitive products considered in isolation seldom justify a...

We develop a real-options model for optimizing production and sourcing choices under evolutionary supply-chain risk. We model lead time as an endogenous decision and calculate the cost differential required to compensate for the risk exposure coming from lead time. The shape of the resulting...

Empirically grounding analytics (EGA) is an area of research that emerges at the intersection of empirical and analytical research. By “empirically grounding,” we mean both the empirical justification of model assumptions and parameters and the empirical assessment of model results and...