Seminar by Özgen Karaer

Seminar by
Özgen Karaer
METU
Department of Industrial Engineering

 

 

We examine how a firm can induce higher environmental quality from a supplier. A high environmental quality of the product stimulates the final demand whereas it requires a lump-sum investment and results in a unit cost increase for the supplier. Under such a setting, we examine three dynamics that the firm can leverage to entice the supplier to invest: revenue sharing, cost sharing, and supplier competition. We find that supplier competition is the most effective across the three and cost sharing produces higher investment levels when the firm is willing to take on bigger shares of the investment cost. Both may surpass the centralized solution investment level under the right circumstances. Our research is based on our work with an NGO as it markets to industries a tool to safely share chemical information.

 

Bio: Özgen Karaer is an assistant professor in the Department of Industrial Engineering at METU. She received her B.S. degree (2002) from Department of Industrial Engineering at METU, and her M.S. and Ph.D. (2008) degrees from Department of Management Science and Engineering at Stanford University. Prior to joining METU, she worked as a senior consultant and consequently a manager in the Operating Strategy department at Gap Inc. headquarters in San Francisco for about four years. During her tenure at Gap Inc., she worked on various projects involving replenishment prioritization, promotion hindsighting, demand planning, store inventory allocation, merchandise-test store selection, store performance measurement, and RFID. Her research is in strategic interactions in supply chains and retail management. (
This research is joint work with Tim Kraft (University of Virginia) and John Khawam (Google Inc).