MGT 528 – Operations: Economics and Strategy

2. Supply-Chain Coordination

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       Lecture Notes (Overheads Used In Class)

· Lecture 2 - Slides

Reading (Preparation)

· Chopra/Meindl, Supply Chain Management, Ch. 17

Questions (Preparation)

· If you were the operations manager for a sports retailer and you suspected a bullwhip effect in your supply chain, what would you want to find out and how would you tackle the problem?

· What is the effect of promotional pricing of your products on the coordination of your supply chain?

· What do you think are the main impediments to share information across the supply chain to deal with the bullwhip effect?

Background Reading (for future reference only)

· Cachon/Lariviere (2005) “Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations,” Management Science.

· Lee/Padmanabhan/Whang (1997) “Taming the Bullwhip Effect in Supply Chains,” Sloan Management Review.

· Pindyck/Rubinfeld (2009) Microeconomics, Chs. 10 [Market Power] & 11 [Pricing with Market Power].

· Sterman (1989) “Modeling Managerial Behavior: Misperceptions of Feedback in a Dynamic Decision Making Experiment,” Management Science.

· Weber/Xiong (2007) “Efficient Contract Design in Multi-Principal Multi-Agent Supply Chains,” POMS Annual Meeting, Dallas, TX.