Improving Supply Chain Performance and Managing Risk Under Weather-Related Demand Uncertainty

Published Online:https://doi.org/10.1287/mnsc.1100.1194

References

  • Anupindi R., Bassok Y., Tayur S., Ganeshan R., Magazine M. Supply contracts with quantity commitments and stochastic demand. Quantitative Models for Supply Chain Management (1999) (Kluwer Academic Publishers, Boston) 197–232CrossrefGoogle Scholar
  • Barnes-Schuster D., Bassok Y., Anupindi R. Coordination and flexibility in supply contracts with options. Manufacturing Service Oper. Management (2002) 4(3):171–207LinkGoogle Scholar
  • Barrieu P., Scaillet O., Filar J. A., Haurie A. A primer on weather derivatives. Uncertainty and Environmental Decision Making: A Handbook of Research and Best Practice (2009) (Springer, New York) . Chap. 5Google Scholar
  • Blumenthal R. G. Warm weather blues. Barron's (2007) 87(40):17Google Scholar
  • Boyabatli O., Toktay L. B. Operational hedging: A review with discussion. (2004) . Working paper, Technology Management Department, INSEAD, Fontainebleau, FranceGoogle Scholar
  • Bunge J. CME plans expansion of weather-linked derivatives. Wall Street Journal (2009) October 28). http://online.wsj.com/article/SB125675206666013683.htmlGoogle Scholar
  • Business Wire Weatherproof adopts apparel industry's first-ever weather hedge. (2007) December 3Google Scholar
  • Byron E., Agins T. Style and substance: Probing price tags: A U.S. attorney and the SEC shine a light on stores' murky “markdown money”: Is it shared risk-or uneven playing field? Wall Street Journal (2005) May 13; Eastern edition):B1Google Scholar
  • Cachon G. P., de Kok A. G., Graves S. C. Supply chain coordination with contracts. Handbooks in Operations Research and Management Science: Supply Chain Management (2003) (Elsevier, New York) 229–340CrossrefGoogle Scholar
  • Cachon G. P. The allocation of inventory risk in a supply chain: Push, pull, and advance-purchase discount contracts. Management Sci. (2004) 50(2):222–238LinkGoogle Scholar
  • Caldentey R., Haugh M. B. Supply contracts with financial hedging. Oper. Res. (2009) 57(1):47–65LinkGoogle Scholar
  • Chen F. Y., Yano C. A. Managing weather-related demand uncertainty with price postponement and weather rebates. (2007) . Working paper, Haas School of Business, University of California, Berkeley, BerkeleyGoogle Scholar
  • Chen F. Y., Gao F., Chao X. Joint optimal ordering and weather hedging decisions. (2007a) . Working paper, Department of Systems Engineering and Engineering Management, Chinese University of Hong Kong, ShatinGoogle Scholar
  • Chen X., Sim M., Simchi-Levi D., Sun P. Risk aversion in inventory management. Oper. Res. (2007b) 55(5):828–842LinkGoogle Scholar
  • Chod J., Rudi N., Van Mieghem J. A. Operational flexibility and financial hedging: Complements or substitutes? Management Sci. (2010) 56(6):1030–1045LinkGoogle Scholar
  • Colin C. Doing something about the weather, financially at least. Portfolio.com (2008) August 7). http://www.wired.com/techbiz/people/news/2008/08/portfolio_0807Google Scholar
  • Corbett C., Tang C. S., Tayur S., Ganeshan R., Magazine M. Designing supply contracts: Contract type and information asymmetry. Quantitative Models for Supply Chain Management (1999) (Kluwer Academic Publishers, Boston) 269–297CrossrefGoogle Scholar
  • Davis G. S. Knowing it's going to rain is better than guessing. (2008) . Investopedia (July 24). Accessed May 24, 2010, http://stocks.investopedia.com/stock-analysis/2008/knowing_its_going_to_rain_is_better_than_guessing_cmecs.aspx?partner=aolGoogle Scholar
  • Davis M. Pricing weather derivatives by marginal value. Quant. Finance (2001) 1(3):305–308CrossrefGoogle Scholar
  • Davis S. M., Meyer C.Future Wealth (2000) (Harvard Business School Press, Boston) Google Scholar
  • Devinney T. M., Stewart D. W. Rethinking the product portfolio: A generalized investment model. Management Sci. (1988) 34(9):1080–1094LinkGoogle Scholar
  • Ding Q., Dong L., Kouvelis P. On the integration of production and financial hedging in global markets. Oper. Res. (2007) 55(3):470–489LinkGoogle Scholar
  • Dutton J. A. Opportunities and priorities in a new era for weather and climate services. Bull. Amer. Meteorological Soc. (2002) 83(9):1303–1311Google Scholar
  • Earnest L. Same-store sales rise 2.9% in May. Los Angeles Times (2005) June 3). http://articles.latimes.com/2005/jun/03/business/fi-retail3Google Scholar
  • Edelson S. A business practice's evolution. WWD: Women's Wear Daily (2005) 189(120):17Google Scholar
  • Emmons H., Gilbert S. Return policies in pricing and inventory decisions for catalogue goods. Management Sci. (1998) 44(2):276–283LinkGoogle Scholar
  • Firth B. Identifying and quantifying how weather influences consumer behavior. (2009) . White paper, Weather Trends International, http://www.wxtrends.com/files/whitepapers/identify_and_quantify_weather_influences_on_human_behavior.pdfGoogle Scholar
  • Fisher M., Raman A. Reducing the cost of demand uncertainty through accurate response to early sales. Oper. Res. (1996) 44(1):87–99LinkGoogle Scholar
  • Gan X., Sethi S., Yan H. Channel coordination with a risk-neutral supplier and a downside-risk-averse retailer. Production Oper. Management (2005) 14(1):80–89CrossrefGoogle Scholar
  • Gaur V., Seshadri S. Hedging inventory risks through market instruments. Manufacturing Service Oper. Management (2005) 7(2):103–120LinkGoogle Scholar
  • Gilbert S. M., Ballou R. H. Supply chain benefits from advanced customer commitments. J. Oper. Management (1999) 18(1):61–73CrossrefGoogle Scholar
  • Glenn D. W. Returns policies for a pessimistic retailer. (2004) . Working paper, University of Illinois, Champaign. http://www.business.uiuc.edu/Working_Papers/papers/04-0111.pdfGoogle Scholar
  • Gottlieb R. Markdown money: It's just a bad idea. (2005) . Playthings (October 1). Accessed May 24, 2010, http://www.playthings.com/article/CA6267321.htmlGoogle Scholar
  • Granot D., Yin S. On the effectiveness of returns policies in the price-dependent newsvendor model. Naval Res. Logist. (2005) 52(8):765–779CrossrefGoogle Scholar
  • Iyer A. V., Bergen M. E. Quick response in manufacturer-retailer channels. Management Sci. (1997) 43(4):559–570LinkGoogle Scholar
  • Jewson S. Weather derivatives and weather derivatives pricing. (2004) . Working paper, http://www.stephenjewson.com/Google Scholar
  • Jewson S., Brix A.Weather Derivative Evaluation (2005) (Cambridge University Press, Cambridge, UK) . Chap. 3CrossrefGoogle Scholar
  • Kandel E. The right to return. J. Law Econom. (1996) 39(1):329–356CrossrefGoogle Scholar
  • Kleiderman A. Soggy summer spells boardroom gloom. BBC News (2004) September 25). http://news.bbc.co.uk/2/hi/business/3686742.stmGoogle Scholar
  • Krishnan H., Kapuscinski R., A Butz D. Coordinating contracts for decentralized supply chains with retailer promotional efforts. Management Sci. (2004) 50(1):48–63LinkGoogle Scholar
  • Lariviere M. A., Tayur S., Ganeshan R., Magazine M. Supply chain contracting and coordination with stochastic demand. Quantitative Models for Supply Chain Management (1999) (Kluwer Publisher, Boston) 233–268Chap. 8CrossrefGoogle Scholar
  • Lariviere M. A., Porteus E. L. Selling to the newsvendor: An analysis of price-only contracts. Manufacturing Service Oper. Management (2001) 3(4):293–305LinkGoogle Scholar
  • Lau H.-S., Lau A. H.-L. Manufacturer's pricing strategy and return policy for a single-period commodity. Eur. J. Oper. Res. (1999) 116(2):291–304CrossrefGoogle Scholar
  • Lee H. L., Tang C. S. Modeling the costs and benefits of delayed product differentiation. Management Sci. (1997) 43(1):40–53LinkGoogle Scholar
  • Lustgarten A. Getting ahead of the weather. Fortune (2005) 151(3):87–94Google Scholar
  • Malinow M., Banks E. End-users. Weather Risk Management (2002) (Palgrave, New York) Google Scholar
  • Martinez-de-Albeniz V., Simchi-Levi D. A portfolio approach to procurement contracts. Production Oper. Management (2005) 14(1):90–114CrossrefGoogle Scholar
  • Marvel H. P., Peck J. Demand uncertainty and returns policies. Internat. Econom. Rev. (1995) 36(3):691–713CrossrefGoogle Scholar
  • McCardle K., Rajaram K., Tang C. S. Advance booking discount programs under retail competition. Management Sci. (2004) 50(5):701–708LinkGoogle Scholar
  • Niemira M. P. Weather matters. Internat. Council Shopping Centers Res. Rev. (2005) 12(2):23–27Google Scholar
  • O'Donnell J. “Wrong” weather can foul up retailers' sales. USA Today (2007) November 22):1BGoogle Scholar
  • Padmanabhan V., Png P. L. Returns policies: Making money by making good. Sloan Management Rev. (1995) 37(1):65–72Google Scholar
  • Pasternack B. A. Optimal pricing and return policies for perishable commodities. Marketing Sci. (1985) 4(2):166–176LinkGoogle Scholar
  • Regnier E. Doing something about the weather. Omega (2008) 36(1):22–32CrossrefGoogle Scholar
  • Saunderson E. Looking beyond the energy sector. Environmental Finance Weather Report. (2004) . Accessed April 18, 2009, http://www.environmental-finance.com/2004/0403mar/hedge.htmGoogle Scholar
  • Shearer B. Weather lowers lead battery sales. American Metal Market (1998) 106(45):7Google Scholar
  • Starr-McCluer M. The effects of weather on retail sales. (2000) . Finance and Economics Discussion Series Working Paper 2000-08, Federal Reserve Board of Governors, Washington, DCGoogle Scholar
  • Taylor T. A. Channel coordination under price protection, midlife returns, and end-of-life returns in dynamic markets. Management Sci. (2001) 47(9):1220–1234LinkGoogle Scholar
  • Taylor T. A. Supply chain coordination under channel rebates with sales effort effects. Management Sci. (2002) 48(8):992–1007LinkGoogle Scholar
  • Tibben-Lembke R. Strategic use of the secondary markets for retailer consumer goods. Calif. Management Rev. (2004) 46(2):90–104CrossrefGoogle Scholar
  • Tsay A. Managing retail channel overstock: Markdown money and returns policies. J. Retailing (2001) 77(4):457–492CrossrefGoogle Scholar
  • Tsay A. A., Nahmias S., Agrawal N., Tayur S., Ganeshan R., Magazine M. Modeling supply chain contracts: A review. Quantitative Models for Supply Chain Management (1999) (Kluwer Academic Publishers, Boston) 299–336CrossrefGoogle Scholar
  • Van Mieghem J. M. Capacity management, investment and hedging: Review and recent developments. Manufacturing Service Oper. Management (2007a) 5(4):269–302LinkGoogle Scholar
  • Van Mieghem J. M. Risk mitigation in newsvendor networks: Resource diversification, flexibility, sharing, and hedging. Management Sci. (2007b) 53(8):1269–1288LinkGoogle Scholar
  • Webster S., Weng Z. K. A risk-free perishable item returns policy. Manufacturing Service Oper. Management (2000) 2(1):100–106LinkGoogle Scholar
  • Wood D. Weathering the odds. Treasury & Risk (2007) June 1). http://www.treasuryandrisk.com/Issues/2007/June%202007/Pages/Weathering-the-Odds.aspxGoogle Scholar
  • Zhou J., Rudi N. Pricing of over-the-counter hedging contracts for real investments. (2007) . Working paper, Simon Graduate School of Business Administration, University of Rochester, Rochester, New YorkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.