Armony, Mor; Plambeck, Erica L. - In: Management Science 51 (2005) 10, pp. 1505-1518
Motivated by a $2.2 billion inventory write-off by Cisco Systems, we investigate how duplicate orders can lead a manufacturer to err in estimating the demand rate and customers' sensitivity to delay, and to make faulty decisions about capacity investment. We consider a manufacturer that sells...