Market mediation and the cost of inventory and flexibility: A systematic literature review
Fisher’s (1997) conceptual framework triggered many recent research efforts which contributed to the general understanding of supply chains (SC). A key element of this framework is the tradeoff between the costs of inventory, flexibility, and unmet customer demand. The current paper reviews 44 empirical papers, from 2006 – 2014. Supply chain collaboration, information integration, organizational size, product modularity, and many other factors influence the firms’ decisions towards their SCs. Effects on the firm’s performance, flexibility, inventory, and other areas are shown. This provides a background to better understand current trends in this manifold field and shows where further research effort is required.