In 1997, a fire at the only Toyota supplier providing the carmaker with P-valves inspired a change of policy: from then on Toyota would dual-source every part. By 2000, however, Toyota, citing the economies of scale possible through single sourcing, once again consolidated its supply chain. Companies that experience a significant disruption in their supply […]
Read More… from Supply Chain Risk: Diversification Vs Under-diversification
For most consumers, waiting in a long queue is a frustrating experience. There is nothing to be gained from standing in a slow line at the grocery store or waiting endlessly on the phone as a call centre automated voice intones again and again that “your call is important to us.” Most consumers don’t realize, […]
Read More… from The Surprising Benefit of Long Queues for Customers and Business
According to Mirko Kremer of Pennsylvania State University, Benny Mantin of the University of Waterloo and Anton Ovchinnikov of the University of Virginia’s Darden School of Business, there are two types of consumers. The first type is what they call “myopic consumers.” These consumers buy a product as soon as that product is priced at […]
Read More… from Myopic Pricing Strategies Lose Seasonal Sales