{"title":"Beyond Retail Stores: Managing Product Proliferation along the Supply Chain","authors":"Isik Biçer, Florian Lücker, Tamer Boyacı","doi":"10.2139/ssrn.3423905","DOIUrl":"https://doi.org/10.2139/ssrn.3423905","url":null,"abstract":"Product proliferation occurs in supply chains to produce diverse products from a limited variety of raw materials. In such a setting, manufacturers can establish market responsiveness and/or cost efficiency in alternative ways. Delaying the point of the proliferation helps manufacturers improve the responsiveness by postponing the ordering decisions of the final products until partial or full resolution of demand uncertainty. This strategy can be implemented in two different approaches: (1) redesigning the operations such that the point of proliferation is swapped with a downstream operation and (2) reducing the lead times. To establish cost efficiency, manufacturers can systematically reduce the costs of all operations or postpone the high-cost operations. We consider a multi-echelon and multi-product newsvendor problem with demand forecast evolution to analyze the value of each operational lever of the responsiveness and the efficiency. We use the multiplicative martingale model of forecast evolution to characterize the demand-updating process, and develop a dynamic optimization model to determine the optimal order quantities at different echelons. We show that reducing the lead time of a downstream operation is more beneficial to manufacturers than reducing the lead time of an upstream operation by the same amount, whereas reducing the costs of upstream operations is more favorable than reducing the costs of downstream operations. We also indicate that delaying the proliferation may cause a loss of profit even if it can be achieved with no additional cost. We develop a decision typology that shows effective operational strategies depending on product/market characteristics and process flexibility.","PeriodicalId":233634,"journal":{"name":"ESMT Berlin Research Paper Series","volume":"502 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116380483","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Fund Flows Inducing Mispricing of Risk in Competitive Financial Markets","authors":"Axel Stahmer","doi":"10.2139/ssrn.2696070","DOIUrl":"https://doi.org/10.2139/ssrn.2696070","url":null,"abstract":"This paper studies the effect of new fund flows on investment behavior and the resulting equilibrium price of risk. The Small Fund Industry model shows equilibria with overinvestment in unprofitable and underinvestment in profitable investment opportunities. The Large Fund Industry model derives market prices for risk and analyzes the resulting price distortions in equilibrium. New flow of funds to the asset management industry lead to inefficient investment decisions, mispricing of risk, and distortion of market implied probabilities. Furthermore, the paper provides an explanation for partial market failure and trade among identical asset managers without assuming heterogeneous beliefs.","PeriodicalId":233634,"journal":{"name":"ESMT Berlin Research Paper Series","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126709635","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"State Aid Modernization and Its Implications for the Assessment of Large Investment Projects: The Relevance of Market Screens in the Regional Aid Guidelines","authors":"H. Friederiszick, Nicola Tosini","doi":"10.2139/ssrn.2163552","DOIUrl":"https://doi.org/10.2139/ssrn.2163552","url":null,"abstract":"The Regional Aid Guidelines foresee specific screens for an in-depth assessment of Large Investment Projects (LIPs): an in-depth assessment is initiated if the market share of the aid beneficiary is above 25% or the investment results in a capacity expansion above 5% in a declining market. It is currently being discussed within the broader State Aid Modernization package and also due to a recent court ruling on the case Propapier whether these market screens should stay as they are. Based on a dataset of all LIP cases notified under the 2006 Regional Aid Guidelines, we evaluate those market screens and find that the screens do have power to identify problematic cases – cases with a below average expected aid effectiveness and aid measures targeting specific industries. We also find, however, that the market screens are affected by a severe implementation problem and, hence, do not help to shorten phase I investigations. From a conceptual perspective, they are also not capable of identifying some of the potentially most problematic regional State aid cases. Policy options are discussed.","PeriodicalId":233634,"journal":{"name":"ESMT Berlin Research Paper Series","volume":"127 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129370293","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}