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Essay

Traditionally Replenishment

Essay specific features

 

Issue:

Business

 

Written by:

Jessie F

 

Date added:

December 8, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

1 / 269

 

Was viewed:

3136 times

 

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Essay content:

One stems from a lack of coordination between production and marketing, which leads to revenue loss or excess inventory. The other is caused by lack of information when making these two decisions. That is, firms usually have to make decisions when market information is poor. We consider the joint effects of coordination and information when market demand becomes more variable in the sense of a specific mean preserving transformation...
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We have three main findings. First, when these two strategies are coordinated by the Headquarters (HQ) of the firm, the HQ uses pricing and inventory as two instruments to manage uncertainty. How exactly increasing demand variability affects the decisions depends on the type of demand uncertainty faced...
displayed 300 characters

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