IDEAS home Printed from https://ideas.repec.org/p/nwu/cmsems/1222.html
   My bibliography  Save this paper

Postponement and Information in a Supply Chain

Author

Listed:
  • Krishnan S. Anand
  • Haim Mendelson

Abstract

We model a supply chain consisting of a production facility, a distribution center and two differentiated markets. Demand information is used to mitigate the effects of uncertainty in the output markets. We study the firm's operational performance under alternative business processes, comparing early and delayed product differentiation. The comparison yields the value of postponement. Our results show that informational considerations have a paramount effect on the effectiveness of postponement strategies. They enable researchers and decisionmakers to performa cost-benefit analyses and quantify the anticipated effects of implementing postponement strategies. They also provide qualitative guidance regarding factors that affect the value of postponement.

Suggested Citation

  • Krishnan S. Anand & Haim Mendelson, 1998. "Postponement and Information in a Supply Chain," Discussion Papers 1222, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    • Handle: RePEc:nwu:cmsems:1222
    as

    Download full text from publisher

    File URL: http://www.kellogg.northwestern.edu/research/math/papers/1222.pdf
    File Function: main text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hau L. Lee, 1996. "Effective Inventory and Service Management Through Product and Process Redesign," Operations Research, INFORMS, vol. 44(1), pages 151-159, February.
    2. Amihud, Yakov & Mendelson, Haim, 1983. "Multiperiod sales-production decisions under uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 5(1), pages 249-265, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krishnan S. Anand & Ravi Aron, 2003. "Group Buying on the Web: A Comparison of Price-Discovery Mechanisms," Management Science, INFORMS, vol. 49(11), pages 1546-1562, November.
    2. Daniel Granot & Shuya Yin, 2008. "Price and Order Postponement in a Decentralized Newsvendor Model with Multiplicative and Price-Dependent Demand," Operations Research, INFORMS, vol. 56(1), pages 121-139, February.
    3. Krishnan S. Anand & Karan Girotra, 2007. "The Strategic Perils of Delayed Differentiation," Management Science, INFORMS, vol. 53(5), pages 697-712, May.
    4. Jiri Chod & Nils Rudi, 2006. "Strategic Investments, Trading, and Pricing Under Forecast Updating," Management Science, INFORMS, vol. 52(12), pages 1913-1929, December.
    5. Jan A. Van Mieghem & Maqbool Dada, 1999. "Price Versus Production Postponement: Capacity and Competition," Management Science, INFORMS, vol. 45(12), pages 1639-1649, December.
    6. Jost, Peter-J. & Süsser, Theresa, 2020. "Company-customer interaction in mass customization," International Journal of Production Economics, Elsevier, vol. 220(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Souza, Gilvan C. & Wagner, Harvey M. & Whybark, D. Clay, 2001. "Evaluating focused factory benefits with queuing theory," European Journal of Operational Research, Elsevier, vol. 128(3), pages 597-610, February.
    2. Jan A. Miegham & Maqbool Dada, 1997. "Capacity Investment under Demand Uncertainty: Price vs. Quantity Competition," Discussion Papers 1204, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    3. Christopher S. Tang, 2017. "OM Forum—Three Simple Approaches for Young Scholars to Identify Relevant and Novel Research Topics in Operations Management," Manufacturing & Service Operations Management, INFORMS, vol. 19(3), pages 338-346, July.
    4. Çağrı Haksöz & Sridhar Seshadri, 2004. "Monotone Forecasts," Operations Research, INFORMS, vol. 52(3), pages 478-486, June.
    5. Li Chen & Yao Cui & Hau L. Lee, 2021. "Retailing with 3D Printing," Production and Operations Management, Production and Operations Management Society, vol. 30(7), pages 1986-2007, July.
    6. Alptekinoglu, Aydin & Tang, Christopher S., 2005. "A model for analyzing multi-channel distribution systems," European Journal of Operational Research, Elsevier, vol. 163(3), pages 802-824, June.
    7. Gilbert, Stephen M. & Cvsa, Viswanath, 2003. "Strategic commitment to price to stimulate downstream innovation in a supply chain," European Journal of Operational Research, Elsevier, vol. 150(3), pages 617-639, November.
    8. Gunasekaran, Angappa & Ngai, Eric W.T., 2009. "Modeling and analysis of build-to-order supply chains," European Journal of Operational Research, Elsevier, vol. 195(2), pages 319-334, June.
    9. Tobias Schlueter & Soenke Sievers, 2014. "Determinants of market beta: the impacts of firm-specific accounting figures and market conditions," Review of Quantitative Finance and Accounting, Springer, vol. 42(3), pages 535-570, April.
    10. Yossi Aviv & Awi Federgruen, 2001. "Design for Postponement: A Comprehensive Characterization of Its Benefits Under Unknown Demand Distributions," Operations Research, INFORMS, vol. 49(4), pages 578-598, August.
    11. Hillier, Mark S., 2002. "Using commonality as backup safety stock," European Journal of Operational Research, Elsevier, vol. 136(2), pages 353-365, January.
    12. Mila Nambiar & David Simchi‐Levi & He Wang, 2021. "Dynamic Inventory Allocation with Demand Learning for Seasonal Goods," Production and Operations Management, Production and Operations Management Society, vol. 30(3), pages 750-765, March.
    13. Alfaro, José A. & Corbett, Charles J., 2000. "The value of SKU rationalization: the pooling effect under suboptimal inventory policies," DEE - Working Papers. Business Economics. WB 9917, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    14. Ngniatedema, Thomas & Fono, Louis Aimé & Mbondo, Georges Dieudonné, 2015. "A delayed product customization cost model with supplier delivery performance," European Journal of Operational Research, Elsevier, vol. 243(1), pages 109-119.
    15. Li, Jian & Edwin Cheng, T.C. & Wang, Shouyang, 2007. "Analysis of postponement strategy for perishable items by EOQ-based models," International Journal of Production Economics, Elsevier, vol. 107(1), pages 31-38, May.
    16. Hau L. Lee & Christopher S. Tang, 1998. "Variability Reduction Through Operations Reversal," Management Science, INFORMS, vol. 44(2), pages 162-172, February.
    17. Jewkes, Elizabeth M. & Alfa, Attahiru S., 2009. "A queueing model of delayed product differentiation," European Journal of Operational Research, Elsevier, vol. 199(3), pages 734-743, December.
    18. Felix Papier & Ulrich W. Thonemann, 2008. "Queuing Models for Sizing and Structuring Rental Fleets," Transportation Science, INFORMS, vol. 42(3), pages 302-317, August.
    19. Brian Denton & Diwakar Gupta & Keith Jawahir, 2003. "Managing Increasing Product Variety at Integrated Steel Mills," Interfaces, INFORMS, vol. 33(2), pages 41-53, April.
    20. Avi Herbon & Matan Shnaiderman & Tatyana Chernonog, 2018. "Postponed two-pricing and ordering opportunity for selling a single season inventoried product," Annals of Operations Research, Springer, vol. 271(2), pages 619-640, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nwu:cmsems:1222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Fran Walker (email available below). General contact details of provider: https://edirc.repec.org/data/cmnwuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.