@article{golmohammadi_kraft_monemian_2024, title={Setting the deadline and the penalty policy for a new environmental standard}, volume={315}, ISSN={["1872-6860"]}, DOI={10.1016/j.ejor.2023.11.014}, abstractNote={A common approach that governments use to combat the potential environmental harm caused by industry is to set an environmental standard for firms to either comply with by a specified deadline or face a penalty. Two penalty policies that governments often rely on to pressure firms to comply with a new standard are a per-period penalty policy and a per-unit penalty policy. We examine how a government should set the deadline and the penalty for a new standard in a market with two competing firms, both of whom make development investment decisions. We analyze and compare the government’s decisions under both penalty policies. Our results show that only when one of the firms has a significantly higher development capability and/or production capability should the government set the deadline in a way such that only one firm complies on time. Comparing the two penalty policies, we find that when the firms’ production decisions are not impacted by the penalty, the government either prefers the per-unit policy or is indifferent between the two policies. Our work adds to the environmental literature on regulatory policy design by examining a government’s deadline choice and penalty decisions (both type and size) for a competitive market with heterogeneous firms.}, number={1}, journal={EUROPEAN JOURNAL OF OPERATIONAL RESEARCH}, author={Golmohammadi, Amirmohsen and Kraft, Tim and Monemian, Seyedamin}, year={2024}, month={May}, pages={88–101} }
 @article{kraft_valdes_zheng_2022, title={Consumer trust in social responsibility communications: The role of supply chain visibility}, volume={8}, ISSN={["1937-5956"]}, DOI={10.1111/poms.13808}, abstractNote={ Consumers are becoming more knowledgeable about companies' social responsibility (SR) practices. As a result, they are increasingly skeptical when companies do not provide clear information about these practices. One way to overcome this skepticism is to strengthen consumer trust through improved supply chain transparency. To create transparency requires a company to both gain visibility into its supply chain and disclose information to consumers. However, the current SR literature has only focused on the effect of disclosure on consumer trust, while the effect of visibility on trust in SR communications is not well understood. Our work addresses this gap. In this paper, we employ an incentivized human‐subject laboratory experiment, an online vignette study, and causal mediation analysis to investigate the impact of visibility on consumer trust in a company's SR communication, and as a result, its impact on consumers' purchase decisions. To further enhance our understanding of consumer behavior, we examine how consumer heterogeneity and workers' conditions in the upstream supply chain influence our results. We find that increasing visibility always strengthens consumer trust. Also, opportunities exist for a trust‐driven revenue benefit (due to greater visibility) when consumers are highly prosocial or have low general trust beliefs, or when the impact of an SR initiative is small. Our results underscore the crucial role that supply chain visibility plays in engendering consumer trust. Moreover, identifying trust as a mechanism to help explain the effect of visibility on sales of SR products offers actionable insights to improve a company's communication strategies. }, journal={PRODUCTION AND OPERATIONS MANAGEMENT}, author={Kraft, Tim and Valdes, Leon and Zheng, Yanchong}, year={2022}, month={Aug} }
 @article{kraft_zheng_2021, title={How Supply Chain Transparency Boosts Business Value}, volume={63}, number={1}, journal={Sloan Management Review}, author={Kraft, Tim and Zheng, Yanchong}, year={2021}, month={Sep} }
 @inbook{hämäläinen_kraft_thomas_zheng_2021, place={Cham, Switzerland}, series={Springer Series in Supply Chain Management}, title={Supply Chain Transparency at Goodio Chocolate}, ISBN={9783030519568 9783030519575}, ISSN={2365-6395 2365-6409}, url={http://dx.doi.org/10.1007/978-3-030-51957-5_11}, DOI={10.1007/978-3-030-51957-5_11}, abstractNote={This chapter examines the topic of supply chain transparency from both a practice and an academic perspective. The authors’ work with Goodio, a Helsinki-based craft chocolate maker, is used as the basis of discussion. To create a transparent supply chain requires a company to both disclose information to consumers and gain visibility into its supply chain. We explore both topics in this chapter. First, regarding the disclosure of information to consumers, we overview an online consumer study the authors conducted with Goodio to test consumers’ valuations of transparency. Second, to illustrate the challenges of supply chain visibility, we present examples from practice of innovative methods companies are using to gain visibility into their supply chains. We conclude the chapter by outlining potential future research directions for the topic of supply chain transparency.}, booktitle={Responsible Business Operations}, publisher={Springer International Publishing}, author={Hämäläinen, Markko and Kraft, Tim and Thomas, Doug and Zheng, Yanchong}, editor={Swaminathan, J.M. and Deshpande, V.Editors}, year={2021}, pages={225–241}, collection={Springer Series in Supply Chain Management} }
 @article{erhun_kraft_wijnsma_2021, title={Sustainable Triple-A Supply Chains}, volume={30}, ISBN={1937-5956}, DOI={10.1111/poms.13306}, abstractNote={ In his 2004 article, Professor Hau Lee argues that the best supply chains are not only fast and cost‐effective but also agile, adaptable, and aligned. The concept of triple‐A supply chains has been extensively studied in academic and trade publications and integrated into numerous operations and supply chain management curricula. It has also influenced the management approach of leaders around the world. Yet since the triple‐A concept was first developed, supply chains have become increasingly global, connected, and interdependent. The increased complexity of global supply chains has reduced much‐needed visibility, further complicating their management, while the growing connectivity and interdependence among different stakeholders have led to many unforeseen environmental and social issues. As a result, Professor Lee’s emphasis on triple‐A supply chains is even more relevant today. In light of these new challenges and demands, we revisit the original triple‐A definitions of agile, adaptable, and aligned, expanding these concepts for a more socially and environmentally conscientious world. We also discuss potential enablers of and barriers to sustainable triple‐A supply chains. }, number={3}, journal={Production and Operations Management}, author={Erhun, Feryal and Kraft, Tim and Wijnsma, Sytske}, year={2021}, month={Mar}, pages={644–655} }
 @article{kraft_valdés_zheng_2020, title={Motivating Supplier Social Responsibility under Incomplete Visibility}, volume={22}, DOI={10.1287/msom.2019.0809}, abstractNote={ Problem definition: We examine how a profit-driven firm (she) can motivate better social responsibility (SR) practices by a supplier (he) when these practices cannot be perfectly observed by the firm. We focus on the firm’s investment in the supplier’s SR capabilities. To capture the influence of consumer demands, we incorporate the potential for SR information to be disclosed by the firm or revealed by a third party. Academic/practical relevance: Most firms have limited visibility into the SR practices of their suppliers. However, there is little research on how a firm under incomplete visibility should (i) invest to improve a supplier’s SR practices and (ii) disclose SR information to consumers. We address this gap. Methodology: We develop a game-theoretic model with asymmetric information to study a supply chain with one supplier and one firm. The firm makes her investment decision given incomplete information about the supplier’s current SR practices. We analyze and compare two settings: the firm does not disclose versus she discloses SR information to the consumers. Results: The firm should invest a high (low) amount in the supplier’s capabilities if the information she observes suggests the supplier’s current SR practices are poor (good). She should always be more aggressive with her investment when disclosing (versus not disclosing). This more aggressive strategy ensures better supplier SR practices under disclosure. When choosing between disclosing and not disclosing, the firm most likely prefers not to disclose when the supplier’s current SR practices seem to be average. Managerial implications: (i) Greater visibility helps the firm to better tailor her investment to the level of support needed. (ii) Better visibility also makes the firm more “truthful” in her disclosure, whereas increased third-party scrutiny makes her more “cautious.” (iii) Mandating disclosure is most beneficial for SR when the suppliers’ current practices seem to be average. }, number={6}, journal={Manufacturing & Service Operations Management}, author={Kraft, T. and Valdés, L. and Zheng, Y.}, year={2020}, month={Nov}, pages={1107–1286} }
 @article{karaer_kraft_yalçın_2019, title={Supplier Development in a Multi-Tier Supply Chain}, volume={8}, ISSN={2472-5854 2472-5862}, url={http://dx.doi.org/10.1080/24725854.2019.1659523}, DOI={10.1080/24725854.2019.1659523}, abstractNote={Abstract We examine how a buyer can use a full-control strategy and cost sharing to develop the sustainable quality capabilities of his tier-1 and tier-2 suppliers. In particular, we consider how the buyer’s development decisions and the suppliers’ sustainable quality decisions are impacted by consumers’ demand sensitivity to sustainable quality and the division of the supply chain margin. Two quality-demand models are studied – the overall quality of the supply chain equals either (i) the sum of or (ii) the minimum between the suppliers’ quality levels. We find that when the suppliers’ sustainable quality levels are additive, even if the low-margin supplier has a positive net profit return from improved quality, she may still choose to free ride on the high-margin supplier’s quality investment. Interestingly, the buyer can cause the free riding with his cost-sharing decisions. When instead, the overall sustainable quality is determined by the minimum between the suppliers’ quality levels, the buyer’s strategy is often to focus only on developing the low-margin supplier. Nevertheless, when the buyer’s market gain from improved quality is large and the suppliers’ gains are comparable to one another, the buyer can justify sharing costs with both suppliers and raising the overall sustainable quality of the supply chain to a level neither supplier can achieve without development support.}, journal={IISE Transactions}, publisher={Informa UK Limited}, author={Karaer, Özgen and Kraft, Tim and Yalçın, Pınar}, year={2019}, month={Aug}, pages={1–61} }
 @article{kraft_valdés_zheng_2018, title={Supply Chain Visibility and Social Responsibility: Investigating Consumers’ Behaviors and Motives}, volume={20}, ISSN={1523-4614 1526-5498}, url={http://dx.doi.org/10.1287/msom.2017.0685}, DOI={10.1287/msom.2017.0685}, abstractNote={ Consumers increasingly want to know more about where and how the products they purchase are being made. To create transparency requires a company to both gain visibility into its supply chain and disclose information to consumers. In this paper, we focus on the dimension of visibility and investigate when companies can benefit from greater supply chain visibility. To do so, we design an incentivized human–subject experiment to study two key questions: (i) How does supply chain visibility impact consumers’ valuations of a company’s social responsibility (SR) practices in its upstream supply chain? (ii) What roles do indirect reciprocity and consumers’ prosociality play in affecting their valuations under different levels of visibility? In our design, greater visibility is represented by lower uncertainty in the outcomes of a company’s SR efforts. Our results show that consumers value greater visibility regarding a company’s SR practices in the upstream supply chain. This is especially true if consumers exhibit a self-serving bias and use uncertainty as an excuse not to pay for SR. We also observe that high prosocial consumers do not exhibit strong indirect reciprocity. Conversely, indirect reciprocity significantly increases low prosocial consumers’ valuations under High visibility. Our work adds to the experimental literature focusing on transparency and SR (which has primarily studied disclosure) by examining the equally important but understudied dimension of visibility. Furthermore, our results on consumer heterogeneity offer insights into what SR information resonates with a company’s target consumers. }, number={4}, journal={Manufacturing & Service Operations Management}, publisher={Institute for Operations Research and the Management Sciences (INFORMS)}, author={Kraft, Tim and Valdés, León and Zheng, Yanchong}, year={2018}, month={Sep}, pages={617–636} }
 @article{karaer_kraft_khawam_2017, title={Buyer and Nonprofit Levers to Improve Suppliers’ Environmental Performance}, volume={26}, number={6}, journal={Production and Operations Management Special Issue on Not-for-Profit Operations Management}, author={Karaer, Ö. and Kraft, T. and Khawam, J.}, year={2017}, pages={1163–1190} }
 @article{kraft_raz_2017, title={Collaborate or Compete: Examining Manufacturers' Replacement Strategies for a Substance of Concern}, volume={26}, ISSN={1059-1478}, url={http://dx.doi.org/10.1111/poms.12710}, DOI={10.1111/poms.12710}, abstractNote={ The recent proliferation of media reports on substances of concern has increased consumer fears, sparked scientific debate, and highlighted the need for stronger chemical regulations. When a substance of concern is identified (e.g., bisphenol‐A (BPA) in reusable water bottles), manufacturers face difficult trade‐offs in deciding whether to proactively replace the substance in their products or to defer replacement and wait to see if regulation occurs. In this study, we examine when opportunities exist for manufacturers to avoid competitively replacing (i.e., making their replacement decisions on their own), and instead, collaborate to replace a substance of concern. We model a vertically differentiated market consisting of a high‐end manufacturer and a low‐end manufacturer, both of whom sell a product that contains a substance of concern. Our analysis investigates how market dynamics (competition and consumer preferences) and external factors (replacement costs and regulatory uncertainty) influence manufacturers' collaboration, replacement, and pricing decisions. We find that when the manufacturers do not collaborate, the high‐end manufacturer can use the presence of a substance of concern to dominate the market by capturing more demand and often charging a higher price for his product than the low‐end manufacturer. Collaboration is possible when there is either a shared fixed cost savings for both manufacturers or an opportunity for the low‐end manufacturer to benefit his competitive position by motivating the high‐end manufacturer to collaborate. From a consumer perspective, although collaboration reduces consumer exposure to the substance of concern, it can decrease consumer surplus when the replacement substance is very expensive. }, number={9}, journal={Production and Operations Management}, publisher={Wiley}, author={Kraft, Tim and Raz, Gal}, year={2017}, month={May}, pages={1646–1662} }
 @inbook{zheng_kraft_valdés_2016, title={Assessing Consumers’ Valuations of Socially Responsible Products with Controlled Experiments}, ISBN={9783319300924 9783319300948}, ISSN={2365-6395 2365-6409}, url={http://dx.doi.org/10.1007/978-3-319-30094-8_3}, DOI={10.1007/978-3-319-30094-8_3}, abstractNote={This chapter discusses the use of controlled experiments to study consumers’ valuations of socially responsible products. We review three common experimental methodologies: conjoint analysis, controlled laboratory experiments, and controlled field experiments. We contrast these methods with examples and highlight the strengths of each method. Despite the large literature on consumers’ valuations of social responsibility, few studies link consumers’ valuations with a company’s supply chain strategy. We present a recent study that fills this gap by utilizing a controlled laboratory experiment to investigate how the level of supply chain transparency may influence consumers’ valuations of a company’s social responsibility practices. We conclude by discussing a few interesting topics for future studies.}, booktitle={Environmentally Responsible Supply Chains}, publisher={Springer International Publishing}, author={Zheng, Yanchong and Kraft, Tim and Valdés, León}, year={2016}, pages={29–50} }
 @inbook{kraft_karaer_sharpe_2016, title={Managing the Chemicals and Substances in Products and Supply Chains}, ISBN={9783319300924 9783319300948}, ISSN={2365-6395 2365-6409}, url={http://dx.doi.org/10.1007/978-3-319-30094-8_17}, DOI={10.1007/978-3-319-30094-8_17}, abstractNote={This chapter explores the challenges that companies face in managing the chemicals and substances found in their products and supply chains. The topic is presented from both a practice and an academic perspective. Based on the authors’ work with an environmental nonprofit, a model is presented that examines levers available to both companies and nonprofits for improving the environmental performance of suppliers. The chapter concludes by discussing potential future research directions with respect to chemicals management and sustainable supply chains.}, booktitle={Environmentally Responsible Supply Chains}, publisher={Springer International Publishing}, author={Kraft, Tim and Karaer, Özgen and Sharpe, Kathryn}, year={2016}, pages={313–337} }
 @inbook{chung_erhun_kraft_2013, place={Upper Saddle River, NJ}, title={Improving Stanford Blood Center’s Platelet Supply Chain}, ISBN={9780133367232}, booktitle={The Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM}, publisher={Financial Times Press}, author={Chung, Y. and Erhun, F. and Kraft, T.}, editor={Munson, C.Editor}, year={2013}, pages={39–49} }
 @article{kraft_erhun_carlson_rafinejad_2013, title={Replacement Decisions for Potentially Hazardous Substances}, volume={22}, ISSN={1059-1478}, url={http://dx.doi.org/10.1111/poms.12021}, DOI={10.1111/poms.12021}, abstractNote={ As public awareness of environmental hazards increases, a growing concern for corporations is the potential negative environmental impact of their products and the chemicals these products contain. In this study, we analyze the optimal decisions of a firm when a substance within its product is identified as potentially hazardous. Although the substance is not currently regulated, regulation may occur in the future. Therefore, the firm must devise a strategy for the development and implementation of a replacement substance. In an environment where replacement costs can be millions of dollars, regulation is uncertain, and both consumer and non‐governmental organization pressures exist, a carefully developed plan that balances costs and risks is critical for a firm. Our results demonstrate that as long as a threat of regulation exists, a firm should always dedicate resources toward developing a replacement substance. However, it is not always optimal for a firm to implement a developed replacement. Regarding competitive dynamics, we find that competition between firms can offset a low chance of a shift in consumer perception about a substance and compel firms to replace; however, competition can lead to inefficient outcomes in which firms incur avoidable costs to implement ahead of potential regulation. }, number={4}, journal={Production and Operations Management}, publisher={Wiley}, author={Kraft, Tim and Erhun, Feryal and Carlson, Robert C. and Rafinejad, Dariush}, year={2013}, month={Apr}, pages={958–975} }
 @article{kraft_zheng_erhun_2013, title={The NGO's Dilemma: How to Influence Firms to Replace a Potentially Hazardous Substance}, volume={15}, ISSN={1523-4614 1526-5498}, url={http://dx.doi.org/10.1287/msom.2013.0440}, DOI={10.1287/msom.2013.0440}, abstractNote={ We study a nongovernmental organization's (NGO's) decisions when it attempts to remove a potentially hazardous substance from commercial use in a market with competing firms. Specifically, we determine under what market and regulatory conditions an NGO should target the industry versus the regulatory body to influence firms to replace the substance. We examine how the NGO's strategy changes as the NGO's pragmatism (i.e., the extent to which the NGO incorporates firms' profits into its decision making) increases. Our results demonstrate that when the NGO is less pragmatic, it should examine the existing market structure to determine whether to target the industry or the regulatory body. However, as the pragmatism of the NGO increases, the NGO should increasingly leverage the competition between firms to ensure that a replacement is available to consumers. We examine multiple extensions including varying the competition dynamics, the NGO targeting both the industry and the regulatory body, the time discounting of replacement costs, and a firm potentially lobbying to counteract an NGO's activism. We show that the potential for a firm to lobby can benefit consumers by motivating the NGO to exert more effort and increase the market sensitivity to a substance, thereby forcing the firm to replace. }, number={4}, journal={Manufacturing & Service Operations Management}, publisher={Institute for Operations Research and the Management Sciences (INFORMS)}, author={Kraft, Tim and Zheng, Yanchong and Erhun, Feryal}, year={2013}, month={Oct}, pages={649–669} }
 @article{kraft_chung_erhun_2012, title={Case Article—KEY Electronics—Sourcing and Warehouse Analysis}, volume={12}, ISSN={1532-0545 1532-0545}, url={http://dx.doi.org/10.1287/ited.1110.0065ca}, DOI={10.1287/ited.1110.0065ca}, abstractNote={ KEY Electronics is a consumer electronics retailer that generated $1.4 billion in total revenue in 2008. KEY has a limited retail presence in Mexico, which it would like to expand from 30 stores in 2009 to 70 by year-end 2012. As part of its growth strategy, KEY must (1) improve its current sourcing of products for Mexico and (2) revamp its existing warehouse operations. The KEY Electronics case introduces students to a practical inventory modeling scenario with real-life data, where solutions are not solely based on minimum cost but also qualitative factors. By emphasizing a holistic modeling approach, the case demonstrates the interdependencies between sourcing decisions and facility requirements. KEY Electronics can be taught as an in-class discussion, a case write-up, or a course project. }, number={2}, journal={INFORMS Transactions on Education}, publisher={Institute for Operations Research and the Management Sciences (INFORMS)}, author={Kraft, Tim and Chung, Yenho T. and Erhun, Feryal}, year={2012}, month={Jan}, pages={89–91} }