Managing supply risk for vertically differentiated co-products

Production and Operations Management

Volumn 23, Issue 9, 2014, Pages 1577-1598

  Bansal, Saurabh ^a   Transchel, Sandra ^b  

^a PENNSYLVANIA STATE UNIVERSITY   (United States)

^b KÜHNE LOGISTICS UNIVERSITY   (Germany)

Author keywords

co production systems; operations strategy; product line; product substitution

Indexed keywords

EID: 84908121665     PISSN: 10591478     EISSN: 19375956     Source Type: Journal    
DOI: 10.1111/poms.12173     Document Type: Article

References (44)

1. Anonymous. 2013. Private communication with a mid-sized client, Orlando, FL.
2. Bansal, S., 2010. Optimal assortments of vertically differentiated products: Analytical solution and properties. Ph.D. Thesis, University of Texas, Austin, TX.
3. Bansal, S., J. S. Dyer,. 2010. Analytical results for solving two-stage problems with multivariate normal uncertainty. Working paper, The Pennsylvania State University, University Park, PA.
4. Bassok, Y., R. Anupindi, R. Akella,. 1999. Single-period multiproduct inventory models with substitution. Oper. Res. 47 (4): 632-642.
5. Berridge, E., 2009. Problems with 40nm. Available at http://www.theinquirer.net/inquirer/news/1560346/problems-40nm (accessed date November 21, 1012).
6. Bitran, G. R., T. Y. Leong,. 1992. Deterministic approximations to co-production problems with service constraints and random yields. Manage. Sci. 38 (5): 724-742.
7. Boyabatli, O., 2011. Supply management in multi-product firms with fixed proportions technology. Technical report, Singapore Management University, Singapore.
8. Boyabatli, O., P. Kleindorfer, S. Koontz,. 2011. Integrating long-term and short-term contracting in beef supply chains. Manage. Sci. 57 (10): 1771-1787.
9. Durango-Cohen E.J., C. A. Yano., 2011. Optimizing customer forecasts for forecast-commitment contracts. Prod. Oper. Manag. 20 (5): 681-698.
10. Gallego, G., C. Stefanescu,. 2009. Upgrades, upsells and pricing in revenue management. Available at http://ssrn.com/abstract=1334341 (accessed date November 21, 1012).
11. Gaudin, S., 2009. AMD graphics chip shortage hitting PC vendors. Available at http://www.computerworld.com/s/article/9140453/AMD-graphics-chip-shortage-hitting-PC-vendors (accessed date November 21, 1012).
12. Gerchak, Y., A. Tripathy, K. Wang,. 1996. Co-production models with random functionality yields. IIE Trans. 28 (5): 391-403.
13. Gurnani, H., R. Akella, J. Lehoczky,. 1996. Optimal order policies in assembly systems with random demand and random supplier delivery. IIE Trans. 28 (11): 865-878.
14. Han, G., M. Dong, X. Shao,. 2012. Yield management with downward substitution and uncertainty demand in semiconductor manufacturing. Int. J. Prod. Res. 50 (3): 743-756.
15. Hodgin, R., 2009. Intel lowers some CPU prices up to 19%. Available at http://www.geek.com/articles/chips/intel-lowers-some-cpu-prices-up-to-19-20090721/
16. Hora, G., 2010. Intel faces mobile CPU shortage. Available at http://www.cooltechzone.com/2010/03/20/intel-faces-mobile-cpu-shortage/ (accessed date November 21, 1012).
17. Hruska, J., 2012. Deliberate excellence: Why intel leads the world in semiconductor manufacturing. Available at http://www.extremetech.com/computing/127987-deliberate-excellence-why-intel-leads-the-world-in-semiconductor-manufacturing (accessed date November 21, 1012).
18. Hsu, A., Y. Bassok,. 1999. Random yield and random demand in a production system with downward substitution. Oper. Res. 47 (2): 277-290.
19. Huang, H. C., H. Song,. 2010. Modified base-stock policies for semiconductor production system with dependent yield rates. Eur. J. Oper. Res. 207 (1): 206-217.
20. Intel. 2012. Transforming Intel's supply chain to meet market challenges. Intel Corporation, Santa Clara, CA.
21. Intel. 2013. Processor offerings at intel. Available at http://download.intel.com/support/processors/corei3/sb/IntelCorei3ComparisonChart.pdf (accessed date November 21, 1012).
22. Jeffery, M. M., 2005. Achieving cost-effective supply chain agility for the semiconductor industry. Ph.D. Thesis, University of Central Florida, Orlando, FL.
23. Kazaz, B,. 2004. Production planning under yield and demand uncertainty with yield-dependent cost and price. Manuf. Serv. Oper. Manag. 6 (3): 209-224.
24. Krishnan, V., W. Zhu,. 2006. Designing a family of development-intensive products. Manage. Sci. 52 (6): 813-825.
25. Lippman, S. A., K. F. McCradle,. 1997. The competitive newsboy. Oper. Res. 45 (1): 54-65.
26. Liu, Q., G. J. van Ryzin,. 2008. Strategic capacity rationing to induce early purchases. Manage. Sci. 54 (6): 1115-1131.
27. Magee, M., 2003. Intel's 12-inch albuquerque fab showing big yields. Available at http://www.theinquirer.net/inquirer/news/1029875/intels-12-inch-albuquerque-fab-showing-big-yields (accessed date November 21, 1012).
28. McGlaun, S., 2008. Shortages of Intel atom CPU leads ASUS to Celeron M. Available at URL http://www.dailytech.com/Shortages+of+Intel+Atom+CPU+Leads+ASUS+to+Celeron+M/article12742.htm (accessed date November 21, 1012).
29. Moorthy, K. S., I. P. L. Png,. 1992. Market segmentation, cannibalization, and the timing of product introductions. Manage. Sci. 38 (3): 345-359.
30. Müller, A., D. Stoyan,. 2002. Comparison Methods for Stochastic Models and Risks. John Wiley & Sons Inc., Hoboken, NJ.
31. Netessine, S., G. Dobson, R. A. Shumsky,. 2002. Flexible service capacity: Optimal investment and the impact of demand correlation. Oper. Res. 50 (2): 375-388.
32. Netessine, S., N. Rudi,. 2003. Centralized and competitive inventory models with demand substitution. Oper. Res. 51 (2): 329-335.
33. Nishi, Y., R. Doering,. 2000. Handbook of Semiconductor Manufacturing Technology. CRC Press, Boca Raton, FL.
34. Noparumpa, T,. 2012. Essays on operational flexibilities in production planning under supply and quality uncertainty. Ph.D. Thesis, Syracuse University.
35. Noparumpa, T., B. Kazaz, S. Webster,. 2012. Wine futures and advance selling under quality uncertainty. Tech. rep., Providence College, Providence, RI, USA.
36. Olsen, T., R. P. Parker,. 2011. Dynamic inventory competition with stockout-based substitution. Working paper, The University of Chicago Graduate School of Business, Chicago, IL.
37. Parlakturk, A. K,. 2012. The value of product variety when selling to strategic consumers. Manuf. Serv. Oper. Manag. 14 (3): 371-385.
38. Parlar, M., S. K. Goyal,. 1984. Optimal ordering decisions for two substitutable products with stochastic demands. Opsearch 21 (1): 1-15.
39. Perry, D., 2011. Intel, AMD fighting fiercely for market share. Available at http://www.tomshardware.com/s/Intel,%20AMD%20Fighting%20For%20Market%20Share/ (accessed date November 21, 1012)
40. Sapra, A., V. Truong, R. Q. Zhang,. 2010. How much demand should be fulfilled ? Oper. Res. 58 (3): 719-733.
41. Shumsky, R. A., F. Zhang,. 2009. Dynamic capacity management with substitution. Oper. Res. 57 (3): 671-684.
42. Sonnet, M. C., 2005. Cost of stockouts in the microprocessor business and its impact in determining the optimal service level. Master's thesis, Sloan School of Management, Massachusetts Institute of Technology, Cambridge, MA.
43. Tomlin, B., Y. Wang,. 2008. Pricing and operational recourse in coproduction systems. Manage. Sci. 54 (3): 522-537.
44. Van Woensel, T., K. Van, Donselaar, R., Broekmeulen, J., Fransoo,. 2007. Consumer responses to shelf out-of-stocks of perishable products. Int. J. Phys. Distrib. Logist. Manag. 37 (9): 704-718.