Publication:
Assortment-based cooperation between two make-to-stock firms

dc.contributor.departmentDepartment of Business Administration
dc.contributor.kuauthorAkçay, Yalçın
dc.contributor.kuauthorTan, Barış
dc.contributor.schoolcollegeinstituteCollege of Administrative Sciences and Economics
dc.date.accessioned2024-11-09T12:26:15Z
dc.date.issued2014
dc.description.abstractCooperation can potentially improve competitiveness and profitability of firms with limited resources and production capacities. We present a continuous-time Markov chain model to study an assortment-based cooperation between two independent firms with limited capacity. An assortment-based cooperation is an agreement for combining the product assortments of the two firms and offering the combined assortment to each firm’s customers. We study both centralized and decentralized cooperations. In a centralized cooperation, firms jointly make replenishment decisions, whereas in the decentralized case, firms operate under independent base stock policies and manage product exchanges through a discount-based contract where each firm supplies its own product to the other firm at a discounted price and at an agreed fill rate. Under this scheme, assortment-based cooperation also mandates each firm to effectively ration their inventories since they have to deal with two different demand streams. The discount-based contract yields the results of the centralized operation by using specific values of the contract parameters. We also prove that assortment based cooperation is always beneficial for two symmetrical firms in both a centralized and a decentralized cooperation. Our numerical experiments reveal that assortment-based cooperation is not always beneficial if the firms are not symmetrical.
dc.description.fulltextYES
dc.description.indexedbyWOS
dc.description.indexedbyScopus
dc.description.issue3
dc.description.openaccessYES
dc.description.publisherscopeInternational
dc.description.sponsoredbyTubitakEuN/A
dc.description.sponsorshipN/A
dc.description.versionAuthor's final manuscript
dc.description.volume46
dc.identifier.doi10.1080/0740817X.2013.814929
dc.identifier.eissn2472-5862
dc.identifier.embargoNO
dc.identifier.filenameinventorynoIR01085
dc.identifier.issn2472-5854
dc.identifier.quartileQ1
dc.identifier.scopus2-s2.0-84890324926
dc.identifier.urihttps://hdl.handle.net/20.500.14288/1667
dc.identifier.wos327842500002
dc.keywordsCooperation
dc.keywordsCustomer choice
dc.keywordsAssortment pooling
dc.language.isoeng
dc.publisherTaylor _ Francis
dc.relation.ispartofIIE Transactions
dc.relation.urihttp://cdm21054.contentdm.oclc.org/cdm/ref/collection/IR/id/1747
dc.subjectBusiness and economics
dc.subjectOperations research and management science
dc.titleAssortment-based cooperation between two make-to-stock firms
dc.typeJournal Article
dspace.entity.typePublication
local.contributor.kuauthorTan, Barış
local.contributor.kuauthorAkçay, Yalçın
local.publication.orgunit1College of Administrative Sciences and Economics
local.publication.orgunit2Department of Business Administration
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relation.isOrgUnitOfPublication.latestForDiscoveryca286af4-45fd-463c-a264-5b47d5caf520
relation.isParentOrgUnitOfPublication972aa199-81e2-499f-908e-6fa3deca434a
relation.isParentOrgUnitOfPublication.latestForDiscovery972aa199-81e2-499f-908e-6fa3deca434a

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