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Operations Subject Group seminar - “The impact of supplier reliability on customer demand” by Nicole DeHoratious

When Mar 04, 2013
from 12:30 PM to 01:50 PM
Where CJBS, W4.03
Contact Name
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The Operations Subject Group invite you to attend the following seminar:


“The impact of supplier reliability on customer demand”


Nicole DeHoratious (co-authors Nathan Craig and Ananth Raman)


To set service levels, firms must understand how changes in service affect customer demand. We find increases in two dimensions of supplier reliability, consistency and recovery, to be associated with significant increases in customer orders. We define consistency as the probability that a supplier delivers in the current period conditional on availability in the prior period and recovery as the probability that a supplier delivers in the current period conditional on a stockout in the prior period. Customers use past supplier performance on these two dimensions to build beliefs about supplier capabilities and hence about future supplier performance. Our study not only provides a method for estimating the impact of changes in supplier performance on customer demand but it also quantities the influence of supplier reliability on customer order volume using data from Hugo Boss, a manufacturer of branded apparel.


Nicole DeHoratius is an expert in the effective management of retail supply chains. In her research, Nicole identifies mechanisms for improving retail performance and operational execution. She has written several case studies across a variety of industries including retail, fashion apparel, and quick-service restaurants and has published in leading journals such as California Management Review, Harvard Business Review, and Management Science. In 2009, the Manufacturing & Service Operations Management Society awarded her its Best Paper Award for her article "Retail Inventory Management When Records are Inaccurate" (co-authored with Adam Mersereau, University of North Carolina, and Linus Schrage, University of Chicago). In addition, Nicole serves as a senior editor for the Production and Operations Management Journal and an associate editor for Decision Sciences and M&SOM. She guest edited recent issues of the Journal of Operations Management and INFORMS Transaction on Education. One of the organizers of the 2005 founding POMS Supply Chain College Conference, Nicole is currently a member of the college's board. Nicole received her D.B.A. from Harvard Business School, her M.Sc. from the University of Sussex as a Rotary Ambassadorial Scholar, and her A.B., magna cum laude, from Harvard College. Prior to her graduate studies, Nicole was a researcher at the RAND Corporation, a public policy think tank, and was on the Board of Directors of the MIT Enterprise Forum of Washington-Baltimore, Inc.

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