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Commodity bundling in the supply chain: a simulation study

Author

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  • Ahmet S. Ozkul
  • Hurrem Yilmaz
  • Mehmet Barut

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.

Suggested Citation

  • Ahmet S. Ozkul & Hurrem Yilmaz & Mehmet Barut, 2012. "Commodity bundling in the supply chain: a simulation study," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 7(1/2/3), pages 114-137.
    • Handle: RePEc:ids:ijisma:v:7:y:2012:i:1/2/3:p:114-137
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    Cited by:

    1. Ali Azadeh & Hassan Songhori & Nima Salehi, 2017. "A unique optimization model for deterministic bundle pricing of two products with limited stock," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(2), pages 1154-1160, November.

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