A Prescriptive Model for Selling Wine Futures to Mitigate Quality Uncertainty

Noparumpa, Tim; Kazaz, Burak; Webster, Scott

doi:10.1007/978-3-030-81423-6_8

Cited by 2 publications

(2 citation statements)

References 30 publications

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“…Rajaram and Karmarkar (2002), Galbreth and Blackburn (2006), and Gupta and Cooper (2005) examine yield uncertainty in the process industries. Tomlin and Wang (2008) and Noparumpa et al (2016) examine co‐production and pricing flexibilities under yield uncertainty.…”

Section: Related Literaturementioning

confidence: 99%

Interventions for an Artemisinin‐based Malaria Medicine Supply Chain

Kazaz

Webster

Yadav

2016

Production and Operations Management

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A rtemisinin combination therapy, the most effective malaria treatment today, is manufactured from an agriculturally derived starting material Artemisia annua. Artemisinin, the main ingredient in malaria medicines, is extracted from Artemisia leaves and used in the production of medicine for treating malaria. The artemisinin market has witnessed high volatility in the supply and price of artemisinin extract. A large fraction of malaria medicines for endemic countries in sub-Saharan Africa is financed by the Global Fund to Fight AIDS, TB, and Malaria and the US President's Malaria Initiative. These agencies together with the World Health Organization, UNITAID, the United Kingdom Department for International Development and the Bill and Melinda Gates Foundation are exploring ways to increase the level of artemisinin production, reduce volatility of artemisinin prices, and improve overall access to malaria medicines for the population. We develop a model of the supply chain, calibrate the model using field data, and investigate the impact of various interventions. Our model shows that initiatives aimed at improving average yield, creating a support-price for agricultural artemisinin, and a larger and carefully managed supply of semi-synthetic artemisinin have the greatest potential for improving supply and reducing price volatility of artemisinin-based malaria medicine.

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Section: Related Literaturementioning

confidence: 99%

Interventions for an Artemisinin‐based Malaria Medicine Supply Chain

Kazaz

Webster

Yadav

2016

Production and Operations Management

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“…Noparumpa (2012) and Noparumpa et al (2012) investigate simultaneous manufacturing of high‐ and low‐quality wine (or low‐quality grapes to be sold in open market) but without any technological improvement or obsolescence. Furthermore, while a vineyard can sell grapes in bulk in commodity markets, computer processors are not sold that way.…”

Section: Introductionmentioning

confidence: 99%

Managing Supply Risk for Vertically Differentiated Co‐Products

Bansal

Transchel

2014

Production and Operations Management

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T he manufacturing complexity of many high-tech products results in a substantial variation in the quality of the units produced. After manufacturing, the units are classified into vertically differentiated products. These products are typically obtained in uncontrollable fractions, leading to mismatches between their demand and supply. We focus on product stockouts due to the supply-demand mismatches. Existing literature suggests that when faced with product stockouts, firms should satisfy all unmet demand of a low-end product by downgrading excess units of a high-end product (downward substitution). However, this policy may be suboptimal if it is likely that low-end customers will substitute with a higher quality product and pay the higher price (upward substitution). In this study, we investigate whether and how much downward substitution firms should perform. We also investigate whether and how much low-end inventory firms should withhold to strategically divert some low-end demand to the highend product. We first establish the existence of regions of co-production technology and willingness of customers to substitute upward where firms adopt different substitution/withholding strategies. Then, we develop a managerial framework to determine the optimal selling strategy during the life cycle of technology products as profit margins shrink, manufacturing technology improves, and more capacity becomes available. Consistent trends exist for exogenous and endogenous prices.

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A Prescriptive Model for Selling Wine Futures to Mitigate Quality Uncertainty

Cited by 2 publications

References 30 publications

Interventions for an Artemisinin‐based Malaria Medicine Supply Chain

Interventions for an Artemisinin‐based Malaria Medicine Supply Chain

Managing Supply Risk for Vertically Differentiated Co‐Products

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