Munich Personal RePEc Archive

Modeling Overstock

Fernandes, Rui and Gouveia, Borges and Pinho, Carlos (2010): Modeling Overstock. Published in: 17th international annual euroma conference. Book of abstracts No. Managing Operations in Service Economies (6 June 2010): p. 72.

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Two main problems have been emerging in supply chain management: the increasing pressure to reduce working capital and the growing variety of products. Most of the popular indicators have been developed based on a controlled environment. A new indicator is now proposed, based on the uncertainty of the demand, the flexibility of the supply chains, the evolution of the products lifecycle and the fulfillment of a required service level. The model to support the indicator will be developed within the real options approach.

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