Contracting in a Supply Chain with Stochastic Demand and Substitute Products

Santiago  Kraiselburd; V.G.   Narayanan; Ananth   Raman

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Article | Production and Operations Management

Contracting in a Supply Chain with Stochastic Demand and Substitute Products

by Santiago Kraiselburd, V.G. Narayanan and Ananth Raman

Keywords: Supply Chain; Product;

Format: Print

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Citation:

Kraiselburd, Santiago, V.G. Narayanan, and Ananth Raman. "Contracting in a Supply Chain with Stochastic Demand and Substitute Products." Production and Operations Management 13, no. 1 (March 2004).

About the Authors

V.G. Narayanan

Thomas D. Casserly, Jr. Professor of Business Administration
Chair, MBA Elective Curriculum

Accounting and Management

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View Publications »

Ananth Raman

UPS Foundation Professor of Business Logistics
Chair, OPM

Technology and Operations Management

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View Publications »

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Case | HBS Case Collection | March 2019 (Revised May 2019)

Fetchr: A New Way of Last Mile Delivery

V.G. Narayanan and Eren Kuzucu

By mid-2016, five years of aggressive growth had transformed Fetchr from a small logistics startup to a 1,000-employee, full-fledged last-mile delivery company operating across four countries in the Middle East and North Africa (MENA). Already beneficiaries of the largest Series A round to the Middle East from an American firm, CEO Idriss Al Rifai and the Fetchr team had ambitions of raising another $40 million in Series B and deliberated continuing international expansion. But first, Al Rifai and his team needed to address the operational efficiency and profitability issues that led their investors to threaten the discontinuation of funding and put the company’s future at stake. The case provides background information on the logistics sphere in the Middle East and the challenges companies face in the region. The case then takes the reader through Al Rifai’s journey of founding and growing Fetchr, backed with innovations like their patented GPS-based delivery technology. Finally, the case zooms in on Fetchr’s management team as they race against time to perform evaluations of their operational efficiency, weigh cost-cutting options, and explore strategies to improve profitability.

Keywords: Startup; decision; financial strategy; UAE; KSA; MENA; Cost Accounting; Business Model; Business Startups; Transformation; Cost Management; Strategy; Disruptive Innovation; Technological Innovation; Growth and Development Strategy; Growth Management; Logistics; Service Delivery; Supply Chain Management; Performance Evaluation; Mathematical Methods; Mobile Technology; Transportation Networks; Middle East; United Arab Emirates; Dubai; Bahrain; Egypt; Saudi Arabia; North Africa;

Citation:
Narayanan, V.G., and Eren Kuzucu. "Fetchr: A New Way of Last Mile Delivery." Harvard Business School Case 119-018, March 2019. (Revised May 2019.) View Details

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Case | HBS Case Collection | March 2019

Mahindra Finance

V.G. Narayanan and Tanvi Deshpande

Mahindra Finance is a non-banking lender operating mainly in the rural and semi-urban areas of India. Set up in 1991, the company had grown to become a market leader with assets of $8.5 billion and a presence in 3,30,000 villages across India. Since most of Mahindra's customers are occupied in farming or allied activities, they are reliant on India's erratic monsoons for their source of livelihood. In order to manage the credit risks associated with lending to such a group, Mahindra Finance has developed ways of diversifying its risks and dealing with bad debt. The case discusses Mahindra Finance's practices of how to manage credit risk, measure this risk, make appropriate provisions for this risk, and finally communicate the risk and its management to the capital markets.

Keywords: Accounting; Business Model; Volatility; Customer Focus and Relationships; Decisions; Credit; Financing and Loans; Service Delivery; Risk and Uncertainty; Financial Services Industry; India;

Citation:
Narayanan, V.G., and Tanvi Deshpande. "Mahindra Finance." Harvard Business School Case 119-003, March 2019. View Details

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Case | HBS Case Collection | November 2018

David Hysong and SHEPHERD Therapeutics

Ananth Raman, John Masko and Aldo Sesia

In 2016, David Hysong, at age 27, found out he had a rare, incurable cancer. Rather than wait around to die, Hysong, a recent graduate of Harvard Divinity School, decided to launch a biotechnology company called Shepherd Therapeutics to development treatments for his and other rare cancers. Two years later, the company had several drugs in promising stages of development but were at least 3 to 5 years away from commercialization, if they made it through clinical trials successfully. Only about 4% of drugs that enter clinical trials receive U.S. FDA approval. It is October 2018, and Shepherd is running out of money. Hysong needs to raise $5 million to fund operations for 2019 and at least $20 million for the following few years. But the company is too early to attract the type of venture capital he needs. Even if he got financing, Hysong worried that the company’s mission could be compromised by investors more interested in a return on their investment than saving lives, and he worried about the scaling challenges ahead.

Keywords: cancer; therapeutics; drugs; Health Care and Treatment; Business Startups; Product Development; Financing and Loans; Growth and Development Strategy; Problems and Challenges;

Citation:
Raman, Ananth, John Masko, and Aldo Sesia. "David Hysong and SHEPHERD Therapeutics." Harvard Business School Case 619-012, November 2018. View Details

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Contracting in a Supply Chain with Stochastic Demand and Substitute Products

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