A Bayesian analysis on the effect of multiple supply options in a quick response environment

Kim, Hag-Soo

doi:10.1002/nav.10097

Cited by 19 publications

(8 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The OPA strategy involves two production modes: an early procurement decision with a longer lead time and a postponed domestic production decision with a shorter lead time. As such, our research is related to the quick-response literature, e.g., Fisher and Raman (1996), Iyer and Bergen (1997), Kim (2003), and references therein, which has its roots in the earlier research on forecast updating, e.g., Graves et al (1986). Similar to this stream of literature, we also allow for forecast updating in our work.…”

Section: Literaturementioning

confidence: 99%

Regulatory Trade Risk and Supply Chain Strategy

Wang

Gilland

Tomlin

2011

Production and Operations Management

View full text Add to dashboard Cite

Trade regulations are an important driver of supply chain strategy in many industries. For example, the textile, paper, chemical, and steel industries grapple with significant levels of non‐tariff barriers (NTBs) such as safeguard controls and countervailing duties. We explore three often observed supply chain strategies in industries subject to NTBs; direct procurement, split procurement, and outward processing arrangements (OPAs). We characterize the optimal procurement quantities for each of these three strategies, and examine how industry and country characteristics influence the firm's strategy preference. For example, we establish that the direct and split strategy profits increase in the NTB price variance but decrease in the mean price. These effects are sufficiently large that NTB price characteristics can dictate which supply chain strategy is preferred. Both the cost disadvantage and lead‐time advantage of domestic production are also significant influencers of the preferred strategy, as is the domestic‐country mandated production constraint associated with the OPA strategy.

show abstract

Section: Literaturementioning

confidence: 99%

Regulatory Trade Risk and Supply Chain Strategy

Wang

Gilland

Tomlin

2011

Production and Operations Management

View full text Add to dashboard Cite

show abstract

“…The problem is to determine the timing and size of the single order given by the retailer. Kim (2003) explores a similar problem in which the retailer is able to order not once but multiple times before the beginning of the selling period. Iyer and Bergen (1997) compare the effect of inventory decisions on the retailer and the manufacturer with or without using quick response.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal ordering and pricing in a quick response system

Serel

2009

International Journal of Production Economics

View full text Add to dashboard Cite

a b s t r a c tQuick response systems enable retailers to estimate customer demand more accurately, and improve stocking decisions for perishable products with uncertain demand. Retailers place separate orders for a product at two different times before the selling season. Following the initial order, additional market information is obtained, and the second-order amount is decided based on an improved demand forecast. In some cases, purchase cost associated with the second order is uncertain, and demand for the product during the season depends on the selling price. We present a solution procedure for finding the optimal order quantity and selling price in this setting. We also study the case where any desired portion of the initial order can be cancelled after updating the demand forecast. In the numerical study, the optimal price is observed to be relatively insensitive to changes in demand variability.

show abstract

“…In recent years, as customer needs and preferences have proliferated, textile and apparel products have been made available in an ever-widening range of colors and sizes [9]. Moreover, an increasing number of manufacturers also sell more general apparel products-such as bags, shoes, and accessories-in addition to clothes [10].…”

Section: Introductionmentioning

confidence: 99%

“…Because of these trends, leading to modifications in the design of apparel products every season, demand uncertainty in the industry is large compared to that for industries with more stable products, such as office supplies, or furniture. In other words, every season there are new apparel products with very short life cycles [9]. Therefore, it is difficult to forecast when and which products will be sold at any given time [11].…”

Section: Introductionmentioning

confidence: 99%

Data Analysis of Shipment for Textiles and Apparel from Logistics Warehouse to Store Considering Disposal Risk

et al. 2019

View full text Add to dashboard Cite

Given the rapid diversification of products in the textile and apparel industry, manufacturers face significant new challenges in production. The life cycle of apparel products has contracted and is now, generally, a several-week season, during which time a majority of products are supposed to be sold. Products that do not sell well may be sold at a price lower than the fixed price, and products that do not sell at all within the sales period may eventually become forced disposal. This creates long-term management and environmental problems. In practice, shipping personnel determine when to ship products to stores after reviewing product sales information. However, they may not schedule or structure these shipments properly because they cannot effectively monitor sales for a large number of products. In this paper, shipment is considered to reduce the risk of product disposal on the premise of selling at a fixed price. Although shipment quantities are determined by various factors, we only consider the change in inventory at the logistics warehouse, since it is difficult to incorporate all factors into the analysis. From cluster analysis, it is found that shipping personnel should recognize a policy to sell products gradually over time. Furthermore, to reduce the risk of disposal, we forecast the inventory from conditional probability and are able to extract products out of a standard grouping using past data.

show abstract

A Bayesian analysis on the effect of multiple supply options in a quick response environment

Cited by 19 publications

References 11 publications

Regulatory Trade Risk and Supply Chain Strategy

Regulatory Trade Risk and Supply Chain Strategy

Optimal ordering and pricing in a quick response system

Data Analysis of Shipment for Textiles and Apparel from Logistics Warehouse to Store Considering Disposal Risk

Contact Info

Product

Resources

About