Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/221578
Authors: 
Anand, Krishnan S.
Mendelson, Haim
Year of Publication: 
1998
Series/Report no.: 
Discussion Paper No. 1222
Abstract: 
We model a supply chain consisting of a production facility, a distribution center and two differentiated markets. Demand information is used to mitigate the effects of uncertainty in the output markets. We study the firm's operational performance under alternative business processes, comparing early and delayed product differentiation. The comparison yields the value of postponement. Our results show that informational considerations have a paramount effect on the effectiveness of postponement strategies. They enable researchers and decisionmakers to performa cost-benefit analyses and quantify the anticipated effects of implementing postponement strategies. They also provide qualitative guidance regarding factors that affect the value of postponement.
Document Type: 
Working Paper

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