Journal
NAVAL RESEARCH LOGISTICS
Volume 50, Issue 8, Pages 937-952Publisher
JOHN WILEY & SONS INC
DOI: 10.1002/nav.10097
Keywords
bayesian; newsvendor; quick response; option
Categories
Ask authors/readers for more resources
In the apparel industry, vendors often suffer from high mismatches in supply and demand. To cope with this problem, they procure the same style product from different suppliers with different manufacturing costs. Especially in the quick response environment, which allows vendors to monitor trends in customer demand and search for available suppliers through the electronic market, they have additional opportunities to improve their decision-making. In this paper, we propose an analytical profit maximization model and develop efficient decision tools to help both the middle and lower level managers pursuing this strategy. Furthermore, we have shown how significantly the vendors' potential competitive edge can be improved by exploiting multiple supply options, even at the expense of high premium procurement costs for late orders. The effect is critical, especially in a highly competitive market, and it has important implications for the top managers. (C) 2003 Wiley Periodicals, Inc.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available