Journal Articles by Santiago Kraiselburd
Journal of Operations Management, 2018
The supply chain literature has devoted much attention to studying how the variability of orders ... more The supply chain literature has devoted much attention to studying how the variability of orders propagates upstream. We explore how this insight extends to the variability of payments to suppliers and its impact on how risk is generated and propagates upstream. To do so, we model the financial features of a supply chain based on industry reports and empirical findings from the finance literature. Capturing policies and constraints of the agents in the supply chain in a formal model, we are able to generate and explain the behavior observed in real supply chains. We show that payment variability occurs and propagates, even if orders are constant, in a cash-constrained supply chain. Furthermore, our model reveals that payment variability may even become amplified under severe cash restrictions. We identify the factors that drive the propagation of variability—the industry risk, the firm's operational leverage, the existence of a financial leverage target, and the cost of debt. The model also makes it possible to explore states of nature not often observed in practice, but that may have an effect in managers' behavior, for example, bankruptcies. We numerically illustrate the impact of these drivers on the risk of upper echelons (suppliers and suppliers' suppliers) as well as the interactions between order and payment variability. We close by summarizing our findings and discussing future research opportunities.
Papers by Santiago Kraiselburd
International Business Times, Dec 16, 2020
IESE Business School, Dec 18, 2018
Debido a su excepcional situacion geografica, las importantes vias de transporte que vinculan a A... more Debido a su excepcional situacion geografica, las importantes vias de transporte que vinculan a Aragon con el mundo, la abundancia de suelo industrial cercano a sus principales ciudades, la constante formacion de excelentes profesionales, la presencia de un centro de investigacion en logistica de primer nivel en el mundo, y las importantes actividades de difusion vinculadas al tema, Aragon es un lugar idoneo para el desarrollo de actividades logisticas. En este articulo hemos recopilado, ordenado y resumido informacion disponible en las paginas web de los principales agentes en el area de la logistica, con el objeto de proveer al lector de una vision general de la importancia de este pujante y apasionante tema que es a la vez un sector de la economia, una disciplina cientifica, y una profesion.
Economia Aragonesa, 2008
Debido a su excepcional situacion geografica, las importantes vias de transporte que vinculan a A... more Debido a su excepcional situacion geografica, las importantes vias de transporte que vinculan a Aragon con el mundo, la abundancia de suelo industrial cercano a sus principales ciudades, la constante formacion de excelentes profesionales, la presencia de un centro de investigacion en logistica de primer nivel en el mundo, y las importantes actividades de difusion vinculadas al tema, Aragon es un lugar idoneo para el desarrollo de actividades logisticas. En este articulo hemos recopilado, ordenado y resumido informacion disponible en las paginas web de los principales agentes en el area de la logistica, con el objeto de proveer al lector de una vision general de la importancia de este pujante y apasionante tema que es a la vez un sector de la economia, una disciplina cientifica, y una profesion.
SSRN Electronic Journal, 2006
When is having no previous contract better than having one, if ever? When should a manufacturer/r... more When is having no previous contract better than having one, if ever? When should a manufacturer/retailer take over part (or all) of the other party's operation, instead of considering just a contract? How about the opposite situation? This paper responds these questions in the context of a Supply Chain under a single period scenario where both the manufacturer and the retailer can exert uncontractible effort that may or may not be specific to the relationship. We thus contribute to the Supply Chain Literature with a new application of the economics' incomplete contract approach to vertical integration.
SSRN Electronic Journal, 2006
When customers cannot find a particular item at a retailer because it is out of stock, they are l... more When customers cannot find a particular item at a retailer because it is out of stock, they are likely, with some probability, to switch to a substitute product from another manufacturer at the same store. Analyzing a two-product full substitution case, this paper examines two beliefs argued in the literature: (1) that, under Vendor Managed Inventory (VMI), the retailers would benefit because manufacturers would increase stocking quantities to avoid losing sales to a competitor and (2) that substitution benefits retailers who make a sale regardless. We find that the first proposition, while appealing, is simply not true for many cases. We also find that the second proposition does not hold for a wide number of cases. We contribute to the understanding of the inherent tradeoffs involved in deciding to use RMI or VMI in the presence of competing, substitute products.
SSRN Electronic Journal, 2006
We show that in supply chains where retailer effort can substantially affect sales, longer lead t... more We show that in supply chains where retailer effort can substantially affect sales, longer lead times can result in higher sales for the manufacturer. Hence, manufacturers might not want to reduce lead times even if it was free or inexpensive to do so. Using a one-period model where retailer effort affects sales and is exerted after stocking quantities are determined, manufacturers and retailers have a price-only contract, lead time from the manufacturer to retailer could be reduced to zero at no additional cost (i.e. there were no capacity constraints, and there was no added per unit cost of producing with short lead times), and there is no competition (i.e., the retailer and manufacturer have exclusive contracts), we still find conditions under which manufacturers are better off sticking to longer lead times. Our paper highlights how supply chain contracts could act as a potential barrier to reducing lead times.
SSRN Electronic Journal, 2007
Perhaps the two most wildly recognized building blocks of inventory theory are the EOQ and the &q... more Perhaps the two most wildly recognized building blocks of inventory theory are the EOQ and the "newsboy" or "newsvendor" models. Moreover, almost the entire supply chain contract literature was built around the latter. The idea behind this paper is the following: before we can even attempt to generalize insights from the model to other situations, we must understand its limitations when applied to the very apparent reason for its existence: actual newsboys. However, a study of present newsboys contracts is almost futile without a deep understanding of the chain of events that lead to its present form. This paper attempts to respond the following questions: When and how have newsboy contracts evolved in the US through the years? Did circumstances change in a way that impacted the types of contracts out there? Why is it that today, of all possible contracts, the wholesale price full returns contract prevails?
SSRN Electronic Journal, 2007
In this paper, we seek to use quantitative models to help appreciate the behavioral processes ass... more In this paper, we seek to use quantitative models to help appreciate the behavioral processes associated with successful cross-functional and cross-firm alignment in supply/demand planning. We model the interaction between a sales and a manufacturing function within a firm, or between an upstream and downstream firm. We claim that misalignment is costly both to the involved functions/firms and to the rest of the organization or supply chain, and focus the paper on studying the circumstances under which alignment will or will not happen. Using game theory, we find that, although misaligned economic incentives can play a role in explaining misalignment of planning behaviors, there is another important issue to consider: in our setting, the key factor that determines whether two functions or firms can align their planning is how much each party knows about the other's beliefs about demand. Thus, in this paper's setting, improved communication can induce alignment even if no economic incentives are changed. While consistent with the predominant view in organizational behavior (OB), this is a fundamental departure from the extant operations management (OM) literature.
SSRN Electronic Journal, 2012
SSRN Electronic Journal, 2010
The supply chain literature has devoted much attention to studying how the variability of orders ... more The supply chain literature has devoted much attention to studying how the variability of orders propagates upstream. We explore how this insight extends to the variability of payments to suppliers and its impact on how risk is generated and propagates upstream. To do so, we model the financial features of a supply chain based on industry reports and empirical findings from the finance literature. Capturing policies and constraints of the agents in the supply chain in a formal model, we are able to generate and explain the behavior observed in real supply chains. We show that payment variability occurs and propagates, even if orders are constant, in a cashconstrained supply chain. Furthermore, our model reveals that payment variability may even become amplified under severe cash restrictions. We identify the factors that drive the propagation of variability-the industry risk, the firm's operational leverage, the existence of a financial leverage target, and the cost of debt. The model also makes it possible to explore states of nature not often observed in practice, but that may have an effect in managers' behavior, for example, bankruptcies. We numerically illustrate the impact of these drivers on the risk of upper echelons (suppliers and suppliers' suppliers) as well as the interactions between order and payment variability. We close by summarizing our findings and discussing future research opportunities.
SSRN Electronic Journal, 2010
In the operations management literature, the financial portion of the inventory holding cost is u... more In the operations management literature, the financial portion of the inventory holding cost is usually assumed to be the constant weighted average cost of capital (WACC) of the firm. This assumption is, at best, an approximation, since this cost depends on the risk of the cash flows, which, in turn, depends on the inventory policy. We study what is the correct value for the financial portion of the inventory holding cost in two models: the EOQ Model and the Periodic-Review, Order-Up-To-Level (R,S) Model. We present a coherent and consistent set of results that transcends the models analyzed. We find that, even when the firm undertakes simultaneous risky investments, the WACC of the firm is not an appropriate approximation for the inventory holding cost. Instead, in the deterministic demand case, the risk-free rate should be used, and in the stochastic demand case, the holding cost should reflect the impact of the demand function and the non-diversifiable risk. We identify consistent biases in the decision variables of the inventory policy, and our numerical analysis reveals that the difference in firm valuations can be up by an average of 15%-20%.
Manufacturing & Service Operations Management, 2013
We study the problem of a two-firm supply chain in which firms simultaneously choose a capacity b... more We study the problem of a two-firm supply chain in which firms simultaneously choose a capacity before demand is realized. We focus on the role that private information about demand has on firms' ability to align their capacity decisions. When forecasts are private information, there are at most two equilibria: a complete coordination failure or a monotone equilibrium. The former equilibrium always exists, whereas the latter exists only when the marginal cost of capacity is sufficiently low. We also show that both truthful information sharing and preplay communication have an equilibrium with higher profits. We then test the model's predictions experimentally. Contrary to our theoretical predictions, we show that private demand forecasts do not have a consistently negative effect on firm profits, though capacities are more misaligned. We show that preplay communication may be more effective at increasing profits than truthful information sharing. Finally, we document that “h...
Unleash lmmuno Oncolytics es un startup en biotecnologia que busca desarrollar virus oncoliticos ... more Unleash lmmuno Oncolytics es un startup en biotecnologia que busca desarrollar virus oncoliticos para el tratamiento del cancer. La empresa fue fundada por Daniel Katzman, un emprendedor argentino con una extensa trayectoria en la industria de la biotecnologia. Unleash tiene el reto de transportar su virus sensible a cambios de temperatura hacia distintas regiones del mundo.
This paper highlights trends and innovations likely to impact Latin America in the context of the... more This paper highlights trends and innovations likely to impact Latin America in the context of the coming 4th industrial revolution, and to assess their impact. This analysis is crucial for the region's future, but it is also essential to narrow our focus, as an analysis of all possible technological innovations is impossible.
Supply Chain 4.0-Diagnóstico de la cadena de suministro uruguaya Estudio de brechas de conocimien... more Supply Chain 4.0-Diagnóstico de la cadena de suministro uruguaya Estudio de brechas de conocimiento en soluciones digitales para el sector logístico Montevideo, mayo 2020 Supply Chain 4.0-Diagnóstico de la cadena de suministro uruguaya Estudio de brechas de conocimiento en soluciones digitales para el sector logístico Montevideo, mayo 2020 Supply Chain 4.0-Diagnóstico de la cadena de suministro uruguaya Estudio de brechas de conocimiento en soluciones digitales para el sector logístico Montevideo, mayo 2020 Supply Chain 4.0-Diagnóstico de la cadena de suministro uruguaya Estudio de brechas de conocimiento en soluciones digitales para el sector logístico Montevideo, mayo 2020
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Journal Articles by Santiago Kraiselburd
Papers by Santiago Kraiselburd