When purchasing durable goods, consumers not only pay for current but also future consumption; consequently, forward looking behavior is an important consideration in durable goods markets. For example, anticipating that prices will go down in the future, consumers may delay the purchase today; such behavior has a significant impact on the firm’s marketing strategies. This dissertation investigates the impact of durability on two marketing strategies: new product introductions and supply chain design. The first part of this dissertation (Chapter 3) examines a durable goods manufacturer’s new product introduction strategy under different market environments where network effects and product compatibility are important. More specifically, this part explores the incentives of a firm to use either a replacement strategy or a skipping strategy—in the former, the firm commercializes the existing technology, while in the latter, it does not; in either case, an improved technology will be available in the future and the firm will introduce a new product at that time. Using a two-period analytical model with network effects, the analysis shows how the level of improvement in the new product, along with the type of compatibility between the products, interacts with network strength to determine the manufacturer’s optimal strategy. Under gradual new product improvement, there is a strict preference for replacement. In contrast, under rapid new product improvement, that preference only holds in markets with relatively high levels of the network strength; at lower levels of the network strength, skipping is preferred; interestingly, for moderate values of the network strength, the level of product improvement affects the manufacturer’s optimal choice differently under varying types of compatibility. The second part of this dissertation (Chapters 4 and 5) focuses on the supply chain design decisions of a durable goods manufacturer who is a sole supplier of an essential proprietary component for making the end product. Three different supply chain structures iii are considered. In the first, the manufacturer operates as a “component supplier” and sells the component to a downstream firm who then makes the end product. In the second structure, the manufacturer produces the end product using its component but does not make that component available to any other firms; here, the manufacturer operates as a “sole entrant”. Finally, the manufacturer can operate as a “dual distributor” who not only makes the end product using its own component, but sells the component to a downstream firm who then competes against the manufacturer in the end product market. The extant literature on the optimal choice among the above supply chain structures has focused mainly on static settings in a framework of price competition. By contrast, researchers predominantly use quantity competition to examine durable goods markets in dynamic (i.e., multiple time period) settings. Moreover, the literature notes diversity in optimal firm behavior under the two types of (i.e., price and quantity) competition. Therefore, to transition from supply chain design in a static setting to a more dynamic one where consumers are forward-looking, this part utilizes Chapter 4 to analyze the manufacturer’s choice using quantity competition in a static setting. This analysis (in Chapter 4) identifies precisely the shift in the manufacturer’s choice of supply chain structure when moving from price competition to a quantity competition framework. With that analysis as a benchmark, the next chapter focuses on the manufacturer’s choice in a dynamic setting. More specifically, Chapter 5 investigates the impact of durability on the optimality of the supply chain structures identified above. Using a two period setting, the analysis explores how the manufacturer’s preference for different supply chain structures is modified. The findings reveal that, e.g., when durability is taken into account, the manufacturer’s preference for the sole entrant role goes up, while the preference for the component supplier role goes down. Further, under certain conditions, the manufacturer may opt to be a dual distributor in the first period and then choose to become only a component supplier in the second period. The underlying rationale for such shifts in preference iv is directly linked to durability, which creates future competition and substantially reduces the manufacturer’s profitability in the long run. Interestingly, this negative impact varies across different supply chain structures. Overall, this dissertation contributes to the current literature on durable goods and enhances our understanding of the impact of durability on the optimality of distinct marketing strategies, and provides insights that are valuable to both academics and managers.

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Consciente que l’unité de compétitivité n’est plus l’entreprise mais toute la chaîne logistique contribuant à la réalisation du produit, les efforts consentis par l’entreprise se matérialisent, d’une part, par la volonté de maîtriser au mieux les activités de conception des produits et d’autre part, par la construction de collaborations entre tous les acteurs de la chaîne logistique participant au cycle de vie du produit. Cela a conduit à l’émergence d’une gestion collaborative du cycle de vie du produit appelée communément PLM. L’objet de cette thèse consiste à définir une démarche méthodologique pour répondre à la problématique suivante : Comment le PLM pourra t-il participer à l’optimisation de la chaîne logistique ? Nous adoptons, dans cette thèse, une approche hybride combinant PLM et modèles mathématiques pour optimiser les décisions de conception simultanée du produit et de sa chaîne logistique. Nous proposons des modèles conceptuels pour résoudre de manière formelle le compromis entre PLM et modèles mathématiques pour une optimisation de la chaîne logistique. Contrairement aux approches classiques centralisées utilisées pour traiter le problème intégré de conception du produit et de sa chaîne logistique et qui engendrent des modèles mathématiques compliqués, nous adoptons une démarche couplant des décisions centralisées quand il s’agit d’intégrer les contraintes des différents maillons de la chaîne logistique et une approche décentralisée quand il s’agit d’optimiser localement chaque maillon de la chaîne. Le mode décentralisé réduit la complexité de résolution des modèles mathématiques et permet à la chaîne logistique de répondre rapidement à l’évolution des conditions locales de chaque maillon. Le PLM joue le rôle d’intégrateur. En effet, le regroupement centralisé des informations par le PLM permet de prendre en considération la dépendance entre les maillons améliorant ainsi les résultats obtenus par optimisation locale. / AIt is recognized that competition is shifting from “firm versus firm” perspective to “supply chain versus supply chain” perspective. Therefore, the ability to optimize the supply chain is becoming the critical issue for companies to win the competitive advantage. Furthermore, all members of a given supply chain must work together to respond to the changes of market demand rapidly. In the actual context, enterprises not only must enhance their relationships with each others, but also need to integrate their business processes through product life cycle activities. This has led to the emergence of a collaborative product lifecycle management commonly known as PLM. The objective of this thesis is to define a methodological approach which answers to the following problematic: How can PLM contribute to supply chain optimization ? We adopt, in this thesis, a hybrid approach combining PLM and mathematical models to optimize decisions for simultaneous design of the product and its supply chain. We propose conceptual models to solve formally the compromise between PLM and mathematical models for supply chain optimization. Unlike traditional centralized approaches used to treat the problem of integrated design of the product and its supply chain which generate complex mathematical models, we adopt an approach combining centralized decisions while integrating the constraints of the different supply chain partners during the product design and decentralized decisions when it comes to locally optimize each supply chain partner. The decentralized approach reduces the complexity of solving mathematical models and allows the supply chain to respond quickly to the evolution of local conditions of each partner. PLM will assure the integration of the different supply chain partners. Indeed, the information centralization by the PLM enables to take into consideration the dependence between these partners, improving therefore local optimization results.

We consider a single-part, two-echelon supply chain problem for spare parts. The network consists of a single manufacturing plant, a set of service centers (SCs) and a set of customers. Both echelons keep spare parts using the base-stock replenishment policy. The plant behaves as an M/M/1 queueing system and has limited production and storage capacity. Demand faced by each SC follows an independent Poisson process. The problem is to determine optimal location-allocation and optimal base-stock levels at both echelons while satisfying the target service levels and customer preferences of SCs. We develop a mixed integer non-linear programming model and use cutting-plane method to optimize the inventory-location decisions. We present an exact solution procedure for the inventory stocking problem and demonstrate the limitations of using traditional inventory models like METRIC-like and Approximate in case of high utilization rates. We show the effectiveness of our proposed cutting-plane algorithm and provide important managerial insights for spare parts management.

We consider a single-part, two-echelon supply chain problem for spare parts. The network consists of a single manufacturing plant, a set of service centers (SCs) and a set of customers. Both echelons keep spare parts using the base-stock replenishment policy. The plant behaves as an M/M/1 queueing system and has limited production and storage capacity. Demand faced by each SC follows an independent Poisson process. The problem is to determine optimal location-allocation and optimal base-stock levels at both echelons while satisfying the target service levels and customer preferences of SCs. We develop a mixed integer non-linear programming model and use cutting-plane method to optimize the inventory-location decisions. We present an exact solution procedure for the inventory stocking problem and demonstrate the limitations of using traditional inventory models like METRIC-like and Approximate in case of high utilization rates. We show the effectiveness of our proposed cutting-plane algorithm and provide important managerial insights for spare parts management.

Les entreprises industrielles évoluent désormais dans un environnement de plus en plus incertain. Ces incertitudes sont liées à la fois à l'amont et à l'aval de la chaîne logistique, mais aussi à la configuration interne de la chaîne et de ses systèmes d'information ou encore à des comportements organisationnels néfastes. Cette thèse a pour objectif de comprendre comment les entreprises industrielles gèrent les incertitudes présentes dans l'environnement de leurs chaînes logistiques. Notre recherche se déroule en deux étapes : une étude préliminaire et principale. L'observation participante menée en étude préliminaire a permis de montrer qu'une entreprise réputée en management de la chaîne logistique a choisi de restructurer ses ressources afin de diminuer la vulnérabilité de sa chaîne logistique. Ainsi, l'étude principale s'articule autour de l'approche basée sur les ressources et du courant des capacités dynamiques. La revue de la littérature montre que l'agilité et la résilience sont deux capacités dynamiques du management de la chaîne logistique. Mobilisant la méthode des cas comme heuristique permettant d'organiser la recherche, six études de cas sont menées au sein d'entreprises industrielles de tailles hétérogènes et de secteurs d'activités variés. Une fois les données collectées et codées sous forme de codage multithématique sur le logiciel NVIVO 8, les résultats s'organisent autour du protocole de cas. Ils retracent les incertitudes rencontrées par les entreprises industrielles et s'attachent à montrer quels outils, pratiques et stratégies sont développés pour diminuer la vulnérabilité. Ces outils, pratiques et stratégies sont des construits des capacités dynamiques et permettent d'identifier si les entreprises font preuves d'agilité et de résilience. Puis, les résultats montrent les difficultés au développement des capacités dynamiques et l'analyse identifie le manque de connaissance en management de la chaîne logistique comme barrière principale. La discussion de la thèse s'oriente autour de la connaissance comme réponse à l'incertitude. La thèse met en avant un décalage entre des connaissances académiques avancées en management de la chaîne logistique et des connaissances plus restreintes en entreprises. La littérature académique s'intéresse principalement aux entreprises matures en management de la chaîne logistique. Cependant, elles ne sont pas représentatives des autres entreprises industrielles. En s'intéressant au lien entre recherche, enseignement et pratique, il est possible d'identifier que le manque de connaissance en management de la chaîne logistique laisse un espace à la création d'effets de mode à la fois dans le monde de la pratique et de la recherche. Finalement, la thèse met en avant les conditions d'émergence de formes d'isomorphisme institutionnel dans les institutions universitaires, engendrant des effets de mode dans les travaux académiques, le tout n'ayant qu'un lien relatif avec la réalité empirique.

Le travail de thèse présenté dans ce mémoire porte sur des méthodes d'optimisation pour la conception conjointe des nomenclatures d'une famille de produits et de sa chaîne logistique. Dans les milieux industriels comme dans les services, le contexte commercial très concurrentiel oblige les entreprises à diversifier leurs offres pour mieux répondre aux demandes de leurs clients. La gestion de cette diversité est alors une problématique centrale : comment proposer une large variété de produits pour satisfaire les besoins des clients tout en maîtrisant les coûts de production, d'inventaire et de logistique ? Les réponses à ce problème relèvent des disciplines habituellement séparées : la conception des produits, la production et la logistique. Si une majorité des approches existantes traitent ces problématiques de façon séquentielle, l'interdisciplinarité apparaît cependant comme un élément essentiel dans la gestion de la diversité. L'objectif de cette thèse est de chercher comment améliorer les interactions entre la conception de familles de produits et l'optimisation des réseaux logistiques en proposant une étape de conception intermédiaire et en développant des outils mathématiques, avec un intérêt particulier porté aux problématiques de développement durable. / This PhD thesis addresses the problem of joint bills-of-materials and supply chain design for a product family. In industry as well as in services, the highly competitive business environment obliges companies to diversify their offers to meet the demands of their customers. Then, managing diversity is a central issue: how to offer a wide variety of products to meet customer needs while controlling costs of production, inventory and logistics? Answers to theses problems are usually in separate disciplines: product design, production and logistics. If most of existing approaches tackle these problems sequentially, interdisciplinarity, however, appears as a key aspect of diversity management. The objective of this thesis is to investigate how to improve the interaction between product families design and supply chain optimization and to develop mathematical tools, with a focus on sustainable development.

Some business leaders in the manufacturing industry lack strategies to optimize green supply chain management strategies that increase profitability while reducing the carbon footprint. The lack of green supply chain strategies sub optimizes the use of resources business leaders use to meet their financial goals. The purpose of this qualitative single case study was to explore successful green supply chain strategies leaders used to increase profitability while reducing the carbon footprint. The participants were 7 business leaders in one manufacturing organization headquartered in Massachusetts who have sophisticated green supply chain strategies in place. The natural resource-based view theory was the conceptual framework for this study. Data were collected through semistructured interviews and organizational documents. Through thematic analysis, 3 key themes emerged: environmental management strategies, profit-increasing strategies, and governance strategies. The findings of this study might be of value to business leaders to reduce costs and create sustainable, competitive supply chains using responsible methods. The implications for social change include the potential for leaders to preserve finite natural resources for future generations and reduce the carbon footprint of manufacturing organizations.

Purpose. Supply chain visibility is among the top concerns expressed by many supply chain leaders. While the traditional enablers of supply chain visibility are information sharing, IT implementation, and relationships between supply chain partners; the role of global supply chain standards as an integral part of each of these enablers is often underestimated. The purpose of this thesis is to investigate the adoption and applicability of global supply chain standards within the provisions of supply chain visibility among various supply chain designs. Methodology. With the aim of theoretical replication, three case studies within the retail industry were conducted. Axfood and IKEA cases were analyzed as examples of opposite types of supply chain design and as companies with different degrees of implementation regarding their global data identification standards. The Clas Ohlson case was analyzed to illustrate a company with open paths in regards to its adoption of future global supply chain standards. In-depth, semi-structured interviews were performed directly with company representatives as well as with GS1, which is one of the assignors of this project. Finally, an analytical model for the potential adoption of global standards was developed. Findings. The results of case analysis clearly illustrate that global data identification standards are one of the pillars of supply chain visibility. Different practices of global standard adoption in different supply chain designs are explained by a different need for supply chain visibility among various supply chains. Moreover, the higher the degree of adoption of global standards, the higher the possibility of gaining strategic benefits. Practical implication. The model developed in this research aims to help logistics and supply chain managers estimate the need for supply chain visibility within their supply chains, and to also assess the potential adoption of global data identification standards within their supply chain practices. Originality/value. This study contributes to theory in such areas of research as supply chain visibility, standardization in supply chain management, and supply chain design. The main contribution is made to the resource-based view (RBV) theory, which according to supply chain visibility can be seen as both a strategic resource and a tool for efficiency optimization. A new term in supply chain design which suggests many-to-many and exclusive supply chain classifications is proposed, as is a framework for assessing the need for supply chain visibility. An analytical model for the potential adoption of global standards is also developed. / Research project “The role of global standards for supply chain visibility” at the Industrial Engineering and Management department of KTH