Industrial production output is generally correlated with the state of economy. Nonetheless, during times economic downturn, some industries take biggest hit, whereas at boom they reap most benefits. To provide insight into this phenomenon, we map supply networks and firms investigate how network structure mediates effect economy on industry or firm sales. Previous research has shown that retail sales are Since retailers source their products from other industries, suppliers can also be This...

We offer a new network perspective on one of the central topics in operations management—the bullwhip effect (BWE). The topic has both practical and scholarly implications. start with an observation: variability orders placed to suppliers is larger than sales customers for most firms, yet aggregate demand felt by upstream does not amplify commensurably. hypothesize that changes supplier’s customer base can smooth out its demand. test hypothesis data set tracks evolution supply relationships...

Problem definition: Cash flow variability is driven by operational decisions and influences operating performance valuation. Despite this the early role that operations management scholarship had on cash theory, prevailing approaches for managing focus financial remedies. Our research extends set of remedies proposing customer portfolio selective trade credit as hedges reducing variability. Methodology/results: We empirically validate our proposal studying a causal relationship between new...

We analyze a revenue management problem in which seller endowed with an initial inventory operates selling binding reservations scheme. Upon arrival, each consumer, trying to maximize his own utility, must decide either buy at the full price and get item immediately or place nonwithdrawable reservation discount wait until end of sales season where leftover units are allocated according first-come-first-serve priority. prove existence equilibrium consumer's strategy this game develop simple...

In the wake of recent literature on revenue management with strategic consumer behavior, we report results a new experimental study. The experiment considers and bargain-hunting behavior decision makers faced buy-now vs. wait decisions, in retail markdown pricing context. We test whether is consistent discounted expected utility model (DEU), or its modified version that accounts for individual perception risk associated option. After controlling perceptions, find 77% subjects are...

We present a method for forecasting sales using financial market information and test this on annual data US public retailers. Our is motivated by the permanent income hypothesis in economics, which states that amount of consumer spending mix between discretionary necessity items depend returns achieved equity portfolios held consumers. Taking as input forecasts from other sources, such analysts or time‐series models, we construct market‐based forecast augmenting with one additional...

The current state of outpatient healthcare delivery is characterized by capacity shortages and long waits for appointments, yet a substantial fraction valuable doctors’ wasted due to no‐shows. In this study, we examine the effect wait appointment on patient flow, specifically patient's decision schedule an subsequently arrive it. These two decisions may be dependent, as appointments are more likely scheduled patients who thereby show up. To estimate these decisions, introduce willingness...

The decision to buy an item at a regular price or wait for possible markdown involves multidimensional trade-off between the value of item, delay in getting it, likelihood and magnitude discount. Such trade-offs are prone behavioral anomalies by which human makers deviate from discounted expected utility model. We build axiomatic preference model that accounts three well-known produces parsimonious generalization utility. then plug this into Stackelberg-Nash game firm decides discount...

Our paper is motivated by a manufacturer that sells seasonal product through multiple retailers competing on an online marketplace, such as the Amazon marketplace. Demand and selling price uncertainty are key features of Sourcing choices differentiated cost available lead times—delaying shortens time which more expensive but yields accurate information about future demand. Thus, ahead season, each retailer faces continuous‐time decision problem when to place order with in what quantity. The...

Our paper is motivated by a manufacturer that sells single seasonal product through multiple retailers competing on an online marketplace, such as Amazon marketplace. Selling price uncertainty and evolution of forecasts demand are key features the Sourcing choices differentiated cost available lead times -- delaying to shorter time more expensive, but yield accurate information about future selling demand. Thus, ahead season, each retailer faces continuous-time decision problem when place...

Problem definition: We provide a novel, supply network-based perspective on inventory productivity and incentives for its improvement. Methodology/results: Using data from 2003 to 2019, we find that is lower materially statistically firms located upstream in the network, higher high degree more central firms. Firms with show equity valuations abnormal returns, both returns amplified upstream, low degree, peripheral Moreover, difference between best worst performing greater suggesting...

We investigate how uncertainty in retail sales can be explained by the return on a financial market index. This information employed forecasting, hedging, and risk management. Our forecasting model expresses total of retailer as function forecasts generated equity analysts, term forecast, an aggregate index over forecast. Using panel annual firm-level for 97 retailers 10 years, each year containing multiple varying terms, we show that large significant part forecast errors is returns....

Industrial production output is generally correlated with the state of economy. Nonetheless, during times economic downturn some industries take biggest hit, while at boom they reap most benefits. To provide insight into this phenomenon we map supply networks and firms investigate how network structure mediates effect economy on industry or firm sales. Previous research has shown that retail sales are Since retailers source their products from other industries, suppliers can also be This...

A decision to buy an item at a regular price or wait for possible markdown involves multi-dimensional trade-off between the value of item, delay in getting it, likelihood and magnitude discount. Such trade-offs are prone behavioral anomalies by which human makers deviate from discounted expected utility model. We build axiomatic preference model that accounts three well-known anomalies, produces parsimonious generalization utility. then plug this into Stackelberg-Nash game firm decides...

In this paper, we investigate the consequences of interlinked sovereign bond markets in Eurozone for transmission yields and market conditions. This linkage is established by financial intermediaries, so-called primary dealers, who participate auctions, are also active as makers secondary multiple countries. We develop a model financially constrained dealers that would like to buy newly issued bonds may consider sell proportion their existing inventory, while providing liquidity at same time....

We propose two perspectives on U.S. manufacturing job losses to countries in Asia 1990-2011: production cost arbitrage and the management of supply-demand mismatch. In our model, a firm facing demand uncertainty decides between investing domestic or overseas capacity. The model predicts greater investment when is high, switching low, volatility systematic risk above certain threshold. Empirically, we observe strong support for motive 1990-2000 2001-2011, i.e., after China's entry into WTO.

This paper uses the FactSet/Revere data set of supply linkages to study structure global production network during 2003-2018. We examine five hypotheses. At individual firm-level, we show that in-degree firms increased at 2.7% per year and out-degree 2.1% on average, showing evidence consistent with multi-sourcing customer diversification. Moreover, number industries in immediate suppliers customers also by 1.1% 1.6%, respectively. network-level, propose a measure integration fragmentation...

The current state of outpatient healthcare delivery is characterized by capacity shortages and long waits for appointments. Yet a substantial fraction valuable doctors’ wasted due to no-shows. In this paper, we examine the effect wait appointment on patient flow, specifically patient’s decision schedule an appointment, subsequently arrive it. These two decisions may be dependent, because appointments are more likely scheduled patients who thereby show-up. To estimate these decisions,...

Problem definition: Sequencing of consumption has significant implications for enjoyment experiential goods and derived ex-post utility due to psychological physiological effects, such as satiation, habituation, or memory decay. In this paper, we examine the effect sequencing on ex-ante valuations bundles, with goal increasing consumer surplus revenue.Methodology/results: We conduct a lab experiment elicit preferences willingness pay forthree bundles consisting two high (H) type products one...

We offer a new network perspective on one of the central topics in Operations Management -- bullwhip effect (BWE). The topic has both practical and scholarly implications. start with an observation: variability orders placed to suppliers is larger than sales customers for most firms, yet aggregate demand felt by upstream does not amplify commensurably. hypothesize that changes supplier's customer base can smooth out its demand. test hypothesis data set tracks evolution supply relationships...

We study the impact of sovereign bond auctions on secondary markets and their feedback to sovereigns’ debt cost. This linkage is established through actions primary dealers, participating in auctions, also acting as market-makers. model financially-constrained dealers who buy newly issued bonds manage inventory, while maintaining market liquidity. find empirical support for our its resulting hypotheses: tend liquidate more liquid risky from inventory order be able participate minimize portfolios.

Cash flow variability is driven by operational decisions and has implications for operating performance valuation. Despite this, the early influence that operations management had on cash management, prevailing approach to managing through external capital financial hedging. We propose customer portfolio as an hedge reducing variability, empirically validate this using a large database of customer-supplier relationships. Our analysis indicates achieved (i) pursuing customers with desirable...