Department of Economics and Business Economics

Decentralized Procurement in Light of Strategic Inventories

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

  • Anil Arya, Fisher College of Business, Ohio State University, United States
  • Hans Frimor, Denmark
  • Brian Mittendorf, Fisher College of Business, Ohio State University, United States
The centralization versus decentralization choice is perhaps the quintessential organizational structure decision. In the operations realm, this choice is particularly critical when it comes to the procurement function. Why firms may opt to decentralize procurement has been often studied and confirmed to be a multifaceted choice. This paper complements existing studies by detailing the trade-offs in the centralization versus decentralization decision in light of firm's decision to cede procurement choices to its individual devisions can help moderate inventory levels and provide a natural salve on supply chain frictions.
Original languageEnglish
JournalManagement Science
Pages (from-to)1-8
Number of pages8
ISSN0025-1909
DOIs
Publication statusPublished - 2014

Bibliographical note

Campus adgang til artiklen / Campus access to the article

    Research areas

  • Decentralization, Inventory management, Supply chain coordination

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