Stability and monotonicity in newsvendor situations

Özen, Ulaş; Erkip, Nesim; Slikker, Marco

doi:10.1016/j.ejor.2011.11.021

Cited by 11 publications

(3 citation statements)

References 28 publications

(28 reference statements)

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“…(2005) and Özen et al. 2006, 2008, 2012. These papers model efficient capacity reallocation among players at the same echelon while we study capacity reallocation facilitated by a common supplier in a two‐echelon supply chain.…”

Section: Literature Surveymentioning

confidence: 98%

Contracting for Capacity under Renegotiation: Partner Preferences and the Value of Anticipating Renegotiation

Kemahlıoğlu‐Ziya

2015

Production and Operations Management

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T his paper studies contract renegotiation in a stylized supply chain model. Two original equipment manufacturers (OEMs) sign fixed-quantity contracts with a contract manufacturer (CM) prior to demand realization. Contract renegotiation after demand realization allows the OEMs to use capacity that is more or less than what they contracted for. We assume that the extra profit due to efficient allocation of capacity is allocated to the supply chain parties according to the egalitarian rule and investigate when an OEM's expected post-renegotiation profit is maximized. We aim to understand how an OEM's expected post-renegotiation profit is affected by her ability to negotiate a low wholesale price in the initial contract as well as the ability of the other OEM to do the same. Regardless of whether renegotiation is anticipated or not at the time of the initial contract, we find that an OEM, who had weak buyer power vis-a-vis the CM and was unable to negotiate a low wholesale price in the initial contract, may benefit more from renegotiation than a stronger OEM. In addition, we show that how the expected post-renegotiation profit of an OEM changes with demand variance or anticipating renegotiation depends on the strength of the OEM's buyer power. Finally, we numerically test the robustness of our results in a supply chain with three OEMs and also identify when the OEMs prefer to leave the CM out of the renegotiation.

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Section: Literature Surveymentioning

confidence: 98%

Contracting for Capacity under Renegotiation: Partner Preferences and the Value of Anticipating Renegotiation

Kemahlıoğlu‐Ziya

2015

Production and Operations Management

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“…A large stream of research has associated organizational structure and stability with the degree of (de)centralization of authority (Van De Panne, 1991; Özen et al , 2012; Strebinger and Treiblmaier, 2004). Previous research has extended the scope of interest from single organizations toward complex SCs (Nagarajan and Bassok, 2008).…”

Section: Introductionmentioning

confidence: 99%

Optimal levels of (de)centralization for resilient supply chains

Treiblmaier

2018

IJLM

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Purpose The purpose of this paper is to illustrate how centralization and decentralization of supply chains (SCs) play a major role in creating organizational resilience. Design/methodology/approach Starting with the basic tenets of contingency theory and applying a grounded theory approach, results from exploratory qualitative and quantitative studies are combined to investigate the impact of (de)centralization on SC resilience capabilities. Findings The findings from a comprehensive literature review combined with two empirical surveys indicate that four important organizational capabilities are needed in order to cope with internal and external disruptions: fast reactions to unforeseen disturbances, reducing the number of negative external forces, reducing the impact of negative external forces and the quick return to normal operating processes. Furthermore, it is illustrated how (de)centralization activities can support these capabilities and thus maximize the SC resilience. Originality/value This paper presents 12 measures for (de)centralization and shows how they can support the four major capabilities of resilient companies. The results from qualitative and quantitative surveys allow for a holistic understanding of the organization and provide a basis for future SC resilience research.

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“…In the 2000s, much of the extensive effort on the NVP has focused on topics concerning pricing strategies (Agrawal and Seshadri, ; Khouja, ; Petruzzi and Dada, ; Monahan et al., ; Arcelus et al., , ; Chen, ; Salinger and Ampudia, ; Hua et al., ) or supply chain management (Lariviere and Porteus, ; Shang and Song, ; Cachon, ; Liu et al., ; Weng, ; Raz and Porteus, ; Özer et al., ; Lau et al., ; Chen, ; Chen and Bell, ; Kouvelis and Zhao, ; Shi et al., ; Özen, et al, ). There are other extensions of the NVP that target value‐at‐risk considerations (Ahmed et al., ; Cheng et al., ; Özler et al., ; Wang et al., ; Jammernegg and Kischka, ; Choi and Ruszczyński, ; Kouvelis and Zhao, ).…”

Section: Introductionmentioning

confidence: 99%

Optimal business hours of the newsvendor problem for retailers

Hosseinipour

Sandoh

2013

Int Trans Operational Res

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This paper proposes a new model for the classical newsvendor problem (NVP), focusing on retailers to discuss an optimal number of business hours per day as well as an optimal stocking quantity. The proposed model assumes that customers' residences are uniformly distributed over the Hotelling unit interval, and individual customers depart from their residences for the store at a finite velocity. Each individual customer can purchase a single product only if she arrives at the retailer's store during business hours and if there still remain products on her arrival. Under these circumstances, this study explores the existence of an optimal strategy for the retailer-an optimal stocking quantity along with an optimal number of business hours. Numerical examples are also provided to illustrate the theoretical underpinnings of the proposed model formulation.

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Stability and monotonicity in newsvendor situations

Cited by 11 publications

References 28 publications

Contracting for Capacity under Renegotiation: Partner Preferences and the Value of Anticipating Renegotiation

Contracting for Capacity under Renegotiation: Partner Preferences and the Value of Anticipating Renegotiation

Optimal levels of (de)centralization for resilient supply chains

Optimal business hours of the newsvendor problem for retailers

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