There are many materials for which the quantity needed by a firm is at best indirectly related to of final product produced that firm, such as solvents in manufacturing processes or office supplies. For any “indirect” materials, an inescapable incentive conflict exists: The buyer wishes minimize consumption these indirect while supplier's profits depend on increasing volume. Both and supplier can exert effort reduce consumption, hence making overall supply chain more efficient. However, no...

Problem definition : This paper explores the impact of competition between platforms in sharing economy. Examples include cases Uber and Lyft context ride-sharing platforms. In particular, we consider two that offer a common service (e.g., rides) through set independent providers drivers) to market customers. Each platform sets price is charged customers for obtaining provided by driver. A portion paid driver who delivers service. Both customers’ drivers’ utilities are sensitive payment...

We explore the management of inventory for stochastic-demand systems, where product's supply is randomly disrupted periods random duration, and demands that arrive when system temporarily out stock become a mix backorders lost sales. The managed according to following modified (s, S) policy: If level at or below s available, place an order bring up S. Our analysis yields optimal values policy parameters, provides insight into strategy there are changes in severity disruptions behavior...

We analyze a multiechelon inventory system with stages arranged in series. In addition to traditional forward material flows, used products are returned recovery facility, where they can be stored, disposed, or remanufactured and shipped one of the re-enter flow material. This combines key elements two simpler systems: series studied by Clark Scarf (1960) single-stage remanufacturing systems Simpson (1978) Inderfurth (1997). focus on identifying structure optimal...

This paper considers an inventory system with assembly structure. In addition to uncertain customer demands, the experiences returns from customers. Some of components in returned products can be recovered and reused, these units are inventory. Returns complicate structure system, so that standard approach (based on reduction equivalent series system) no longer applies general. We identify conditions item-recovery pattern restrictions policy under which does exist. For special case where...

We show that a modified base-stock policy is optimal for multiproduct, infinite-horizon production-inventory systems, where demand the products random and share finite resource every period. characterize case of homogeneous products. Because difficulty in computing levels heterogeneous case, we propose heuristic simple enough practical applications. present numerical results suggest yields near-optimal solutions.

We model a modular assembly system in which final assembler outsources some of the task to first-tier suppliers (subassemblers), who produce modules made up multiple components. The sets module prices it will pay subassemblers, subassemblers set component they suppliers, and then all players choose how much capacity install, with minimum choice determining capacity. Finally, stochastic end-product demand is observed (and are paid for) same number units—the characterize equilibrium price...

We consider an assembly system with a single end product and general structure, where one or more of the component suppliers (sub)assembly production processes is subject to random supply disruptions. present method for reducing equivalent some subsystems replaced by series structure. This reduction simplifies computation optimal ordering policies can also allow comparison disruption impacts across systems different chain structures. identify conditions under which state-dependent echelon...

Abstract In this paper, we extend the results of Ferguson M. Naval Research Logistics 50, 2003, 917–936 . on an end‐product manufacturer's choice when to commit order quantity from its parts supplier. During supplier's lead‐time, information arrives about demand. This reduces some forecast uncertainty. While supplier must choose production based original forecast, manufacturer can wait place after observing update. We find that a is sometimes better off with contract requiring early...

We study the optimality of make-to-order (MTO) versus make-to-stock (MTS) policies for a company producing multiple heterogeneous products at shared manufacturing facility. Manufacturing times are general i.i.d. random variables, and different may have manufacturing-time distributions. Demands independent Poisson processes with arrival rates. The costs managing production-inventory system stationary include inventory holding backordering costs. Backordering be $ per unit or time. derive...

This paper analyzes a series inventory system with stationary costs and stochastic demand over an infinite horizon. A distinctive feature is that can be negative, representing returns from customers, as well zero or positive. We observe that, in nonnegative demand, echelon base-stock policy optimal here. However, the steady-state behavior of under such different systems demands. present exact procedure several approximations for computing operating characteristics any policy, also describe...

We consider a system in which single finished good is assembled from two components. Demand for the product stochastic and stationary, procurement assembly lead times are constant. Unsatisfied demand backordered. The inventory of each component or controlled by separate firm using base-stock policy. Each charged holding costs on its own inventory, plus share shortage cost due to backorders product. investigate equilibrium levels that arise this under both echelon local policies. In cases,...

In this paper, we explore the impact of decentralized decision making on behavior multiproduct assembly systems. Specifically, consider a system where three components (two product specific and one common) are used to produce two end products satisfy stochastic customer demands. We study under both centralized making. system, prove that for any set wholesale prices, there exists unique Pareto-optimal equilibrium in suppliers’ capacity game. show assembler’s optimal prices lie regions—one...

We consider an assemble-to-order system in which multiple products are assembled from a common component and set of product-dedicated components. Component capacities chosen prior to finite-horizon selling season, the is allocated based on observed demands. propose collection allocation mechanisms involving varying degrees demand aggregation, ranging scheme under all demands making decision allocations made for each arriving demand. In this context, we explore impact sales, profits, capacity...

In this paper we examine the impact of different types advance demand information on firm profit and benefits resource flexibility. Specifically, consider a that must choose capacities resources will be used to satisfy stochastic for multiple products, where demands follow multivariate normal distribution. Prior capacity decision, receives revealing either total volume across products or mix between products. We two scenarios: dedicated setting with product-specific common scenario one...

Problem definition: How can one adapt multiechelon inventory models to capture the cash flows generated by various payment-timing contracts? What competitive policy behavior arises under these arrangements? Academic/practical relevance: Technology advancements are increasing variety of payment triggers between supply chain stages. However, traditional models, which were originally developed for vertically integrated systems, do not explicitly account payments flowing up nor issues timing...

We consider a multiproduct assemble-to-order (ATO) system, in which inventory is kept only at the component level and finished products are assembled response to customer demands. In addition stochastic demand for products, system experiences returns of subsets components, can then be used satisfy subsequent The managed over an infinite horizon using component-level base-stock policy. identify several ways complicate behavior we demonstrate how handle these additional complexities when...

We study a strategy to manage demands that occur when an inventory system is temporarily out of stock: offer the customer facing unsatisfied demand economic incentive backorder. explore benefits this management by analyzing model with stochastic and random supply disruptions, where probability unfilled will backorder (as opposed becoming lost sale) can be influenced incentive. Our results provide several insights regarding suggest offering incentives significant.

Problem definition: This paper explores the impact of competition between platforms in sharing economy. Examples include cases Uber and Lyft context ride-sharing platforms. In particular, we consider two that offer a common service (e.g., rides) through set independent providers drivers) to market customers. Each platform sets price is charged customers for obtaining provided by driver. A portion paid driver delivers service. Both customers' drivers' utilities are sensitive payment terms...

Manufacturing systems are becoming more and flexible to confront uncertainty in demands of multiple product types. In this paper, we study the properties manufacturing from perspective demand shortfall service level as functions setup time, nonhomogeneous capacities, distributions. Closed-form bounds well an accurate estimate obtained. Sensitivity analyses with respect reductions downtime, cycle time carried out, impact new launch correlation on system flexibility is investigated.

Problem definition: What is your research problem? How can one adapt multiechelon inventory models to capture the cash flows generated by various payment timing contracts? competitive policy behavior arises under these arrangements?