Niederhoff research paper accepted for publication in Production and Operations Management
Research by Julie Niederhoff, assistant professor of supply chain management at the Whitman School of Management, and her co-author, Xiaole “Sherri” Wu, an assistant professor in the Department of Management Science at Fudan University, has been accepted for publication in the journal Production and Operations Management.
In the paper, titled "Fairness in Selling to the Newsvendor," the authors use a mathematical model to consider how objectives, other than profit-maximization, influence the trade efficiency in a two-party supply chain with uncertain demand. Specifically, the authors contend, when the supplier or buyer of a good is concerned about the fairness of profits for the other party and themselves—for example, in Fair Trade agreements—the system develops prices and order quantities that are often more (but sometimes less) efficient (higher volumes and higher total profits) than would be predicted if all parties were strictly maximizing expected profits. The authors conclude that fairness concerns are most influential in a supply chain with high demand risk.
Production and Operations Management is published by the Production and Operations Management Society (POMS), an international professional organization representing the interests of POM professionals from around the world.