S. Alex Yang
MBA, Booth School of Business, University of Chicago
My main research interests are on Operations Management under Financial Frictions. Specifically, I study how the presence of financial frictions influence operational decision-making, operations strategies, and supply chain interactions. Within this area, my current research focuses on two topics: Supply Chain Finance and Managing Financially Constrained Operations.
My definition of supply chain finance includes all financing tools/arrangements that are between supply chain partners (e.g., trade credit, reverse factoring) or actively taking supply chain relationship/transaction into consideration (e.g., factoring, purchase order financing). This view is consistent with the recent definition of supply chain finance by the International Chamber of Commerce (ICC on SCF). My work in this area focuses on the operational implications of supply chain finance, and the optimal design of supply chain finance contracts.
Trade Credit and Supplier Competition, with Jiri Chod and Evgeny Lyandres. (Download, updated on October 7, 2016)
Trade Credit, Risk Sharing, and Inventory Financing Portfolios, with John R. Birge, R&R, Management Science. (Download, updated on September 20, 2016).
· Earlier version titled: How Inventory is (Should be) Financed: Trade Credit in Supply Chains with Demand Uncertainty and Costs of Financial Distress (Download)
Sourcing from Suppliers with Financial Constraints and Performance Risk, with Christopher S. Tang and Jing Wu, R&R, M&SOM. (Download, updated on June 8, 2016)
Cancelability in Trade Credit Insurance, with Christopher J. Chen and Nitin Bakshi, R&R, M&SOM. (Download, updated on February 29, 2016).
Financial Pooling in a Supply Chain, with Ming Hu and Qu Qian, in Preparation.
Trade Credit in Supply Chains: Multiple Creditors and Priority Rules, with John R. Birge. (Download)
Heikki Peura, S. Alex Yang, and Guoming Lai, Trade Credit in Competition: A Horizontal Benefit, M&SOM, forthcoming. (SSRN Working Paper version)
· Earlier version titled: Risk or Margin: The Role of Trade Credit in Competition
Traditional operations management focuses on firms that are not financially constrained, or those whose financing cost can be captured by a single discount factor. For those firms, financial situation and operational decisions are not actively linked. However, when firms are financially constrained, their operational decisions and financial status can be highly inter-dependent. My works in this topic focuses on understanding such inter-dependence and its managerial implications.
When Customers Anticipate Liquidation Sales: Managing Operations under Financial Distress, with John Birge, Rodney Parker, and Michelle X. Wu, R&R, M&SOM. (Download, updated on July 6, 2016)
· Earlier version titled: Operational Strategies in the Presence of Consumer-Driven Bankruptcy Risk
The Financial Holding Cost of Inventory, with Lei Xie and Xiaoying Liang, in Preparation.
Pre-Selling Capacity under the Threat of Bankruptcy, with Erica L. Plambeck and Robert Swinney, in Preparation.
J. R. Birge and S. A. Yang (2007) A Model of Taxable Portfolio with Many Assets, Journal of Banking and Finance, 31 (2007), 3269–3290.
Classes Taught: Data, Models and Decisions (Full-time MBA, 2010 - present), Managerial Statistics (Executive MBA, 2010 - present), Operational Risk (Executive Education, 2014), Big Data Strategy (Executive Education, 2014)
Other Teaching Interests: Big Data, Business Analytics, Operations Strategy, Supply Chain Management, Risk Management, Supply Chain Finance