TY - JOUR
T1 - The adoption of inventory postponement and speculation
T2 - An empirical assessment of oligopolistic Internet retailers
AU - Bailey, Joseph P.
AU - Rabinovich, Elliot
N1 - Funding Information:
We would like to thank Curtis Grimm at the University of Maryland, the participants of the 2001 Annual Meeting of the Decision Sciences Institute in San Francisco, CA and the 2002 Supply Chain Management Seminar Series at Arizona State University, and two anonymous Transportation Research (E) reviewers and the Editor in Chief for their suggestions. This work was supported in part by the National Science Foundation under grant number DMI9908137.
PY - 2006/7
Y1 - 2006/7
N2 - Unlike traditional retailers, which use inventory speculation for all their merchandise, Internet book retailers selectively use inventory postponement for specific merchandise items to lower their inventory costs. We develop and test hypotheses that describe merchandise determinants of inventory postponement and speculation at two oligopolistic retailers: Amazon.com and Barnesandnoble.com. We find that merchandise popularity raises both firms' likelihood of inventory speculation. Furthermore, merchandise vintage affects negatively both firms' likelihood of inventory speculation. Merchandise price affects negatively the likelihood of inventory speculation for Amazon.com and positively for Barnesandnoble.com. This may be due to conditions within Barnesandnoble.com, which operates physical and Internet channels.
AB - Unlike traditional retailers, which use inventory speculation for all their merchandise, Internet book retailers selectively use inventory postponement for specific merchandise items to lower their inventory costs. We develop and test hypotheses that describe merchandise determinants of inventory postponement and speculation at two oligopolistic retailers: Amazon.com and Barnesandnoble.com. We find that merchandise popularity raises both firms' likelihood of inventory speculation. Furthermore, merchandise vintage affects negatively both firms' likelihood of inventory speculation. Merchandise price affects negatively the likelihood of inventory speculation for Amazon.com and positively for Barnesandnoble.com. This may be due to conditions within Barnesandnoble.com, which operates physical and Internet channels.
KW - Electronic commerce
KW - Empirical study
KW - Inventory management
KW - Postponement analysis
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U2 - 10.1016/j.tre.2004.09.002
DO - 10.1016/j.tre.2004.09.002
M3 - Article
AN - SCOPUS:33846408358
VL - 42
SP - 258
EP - 271
JO - Transportation Research, Part E: Logistics and Transportation Review
JF - Transportation Research, Part E: Logistics and Transportation Review
SN - 1366-5545
IS - 4
ER -