Commodity bundling in the supply chain: a simulation study

Ahmet S. Ozkul, Hurrem Yilmaz and Mehmet Barut

International Journal of Integrated Supply Management, 2012, vol. 7, issue 1/2/3, 114-137

Abstract: Commodity bundling has received little attention in the supply chain literature although products in a bundle are delivered through supply chains. Marketing and economics literature largely discuss the issue from pricing and consumer behaviour perspectives. In this study, we investigate bundling strategy from a supply chain and operations standpoint. Our results indicate that not only the products in the bundle but also the supply chains providing these products should be matched considering capacity limitations and volume flexibilities. We discuss theoretical implications of our results and provide recommendations for practicing managers based on our findings and insights.

Keywords: commodity bundling; supply chains; capacity limitation; volume flexibility; functional products; innovative products; simulation; supply chain management; SCM; operations. (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijisma:v:7:y:2012:i:1/2/3:p:114-137

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