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Full-Text Articles in Management Information Systems

Buyer Financing In Pull Supply Chains: Zero-Interest Early Payment Or In-House Factoring?, Xiangfeng Chen, Qihui Lu, Gangshu (George) Cai Oct 2020

Buyer Financing In Pull Supply Chains: Zero-Interest Early Payment Or In-House Factoring?, Xiangfeng Chen, Qihui Lu, Gangshu (George) Cai

Information Systems and Analytics

This study investigates the efficacy of zero-interest early payment financing (alternatively referred to as early payment) and positive-interest in-house factoring financing in a pull supply chain with a capital-constrained manufacturer selling a product through a capital-abundant retailer. Early payment is the prepayment of a wholesale cost to the manufacturer, whereas in-house factoring is a loan service provided to the manufacturer by a branch financing firm of the same retailer. We find that the retailer prefers early payment financing to bank financing when the manufacturer’s production cost is low. If the retailer instead offers positive-interest in-house factoring financing to the manufacturer, …


Manufacturer Strategy On Service Provision In Competitive Channels, Xiaodong Yang, Gangshu (George) Cai, Charles A. Ingene, Jihong Zhang Jan 2020

Manufacturer Strategy On Service Provision In Competitive Channels, Xiaodong Yang, Gangshu (George) Cai, Charles A. Ingene, Jihong Zhang

Information Systems and Analytics

A manufacturer commonly distributes through a set of retailers who are authorized to sell its product; demand-enhancing services may also be provided by the manufacturer. These services may be granted to all authorized retailers (uniform service provision) or to a favored few authorized retailers (differential service provision). To determine when a manufacturer does—or does not—bestow equal service levels, we develop a model of one manufacturer selling through two competing retailers. We find manufacturer optimality to entail uniform service at some parametric values, while differential service is optimal at other values. Counterintuitively, with differential service, the recipient of lower service may …


Optimal Policy For Production Systems With Two Flexible Resources And Twoproducts, Jianjun Xu, Shaoxiang Chen, Gangshu (George) Cai Jan 2020

Optimal Policy For Production Systems With Two Flexible Resources And Twoproducts, Jianjun Xu, Shaoxiang Chen, Gangshu (George) Cai

Information Systems and Analytics

Manufacturing companies are facing increasing volatility in demand. As a result, there has been an emerging need for a flexible multi-period manufacturing system that uses multiple resources to produce multiple products with stochastic demands. To manage such multi-product, multi-resource systems, manufacturers need to make two decisions simultaneously: setting a production quantity for each product and allocating the limited resources dynamically among the products. Unfortunately, although the flexibility design and investment have been extensively studied, the literature has been muted on how to make production and allocation decisions optimally from an operational perspective. This article attempts to fill this literature gap …