Gérard Cachon

Gérard Cachon
  • Fred R. Sullivan Professor
  • Professor of Operations, Information and Decisions
  • Professor of Marketing
  • Vice Dean of Strategic Initiatives

Contact Information

  • office Address:

    3730 Walnut Street
    543 Jon M. Huntsman Hall
    Philadelphia, PA 19104

Research Interests: operations strategy, pricing, supply chain management, sustainability

Links: CV, Personal Website

Overview

Professor Cachon studies supply chain management, operation strategy and pricing with a focus on how technology transforms competitive dynamics and enables novel operational strategies.

He is an INFORMS Fellow, a Fellow and former President of the Manufacturing and Service Operations Management Society, and the former Editor-in-Chief of  Management Science as well as Manufacturing & Service Operations Management.

He has authored two textbooks (along with Christian Terwiesch): Operations Management (1e) and Matching Supply with Demand: An Introduction to Operations Management (3rd ed.). These books have been used in undergraduate, MBA and executive MBA courses at Wharton as well as at numerous other business schools throughout the world.

His articles have appeared in Management Science, Manufacturing & Service Operations Management, Marketing ScienceOperations Research, the Quarterly Journal of Economics, and Harvard Business Review, among otherse

As Vice Dean of Strategic Initiatives he is responsible for developing and leading new initiatives for enhancing Wharton’s excellence in teaching and research.

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Research

  • Gérard Cachon, Kaitlin Daniels, Ruben Lobel (Under Review), The Role of Surge Pricing on a Service Platform with Self-Scheduling Capacity.

  • Gérard Cachon, Santiago Gallino, Marcelo Olivares (Under Review), Severe Weather and Automobile Assembly Productivity.

  • Santiago Gallino, Gérard Cachon, Marcelo Olivares (Working), Does Inventory Increase Sales? The Billboard and Scarcity Effect in U.S. Automobile Dealerships.

  • Gérard Cachon (Working), Retail store density and the cost of greenhouse gas emissions.

  • Robert Swinney, Gérard Cachon, Serguei Netessine (2011), Capacity investment timing by start-ups and established firms in new markets, Management Science, 57(4). 763-777.

  • Gérard Cachon and Robert Swinney (2011), The value of fast fashion: quick response, enhanced design, and strategic consumer behavior, Management Science, 57(4). 778-795.

  • Gérard Cachon and Pnina Feldman (2011), Pricing Service Subject to Congestion: Charge Per-Use Fees or Sell Subscriptions?, Manufacturing & Service Operations Management, 13(2). 244-260.

  • Gérard Cachon and Pnina Feldman (Working), Dynamic versus static pricing in the presence of strategic consumers.

  • Gérard Cachon and Pnina Feldman (Working), Is advance selling desirable with competition?.

  • Gérard Cachon and Gurhan Kok (2010), Competing manufacturers in a retail supply chain: on contractual form and coordination, Management Science, 56(3). 571-589.

    Abstract: It is common for a retailer to sell products from competing manufacturers. How then should the firms manage their contract negotiations? The supply chain coordination literature focuses either on a single manufacturer selling to a single retailer or one manufacturer selling to many (possibly competing) retailers. We find that some key conclusions from those market structures do not apply in our setting. We allow the manufacturers to compete for the retailer’s business using one of three types of contracts, a wholesale-price contract, a quantity-discount contract or a two-part tariff. It is well known that there are two reasons why a monopolist manufacturer prefers either of the latter two, more sophisticated, contracts relative to the wholesale-price contract. First, they can be used to coordinate the supply chain, meaning that they induce the retailer to sell more because they reduce the double marginalization caused by wholesale-price contracts. Second, they can be used to extract rents from the retailer, in theory allowing the manufacturer to leave the retailer only with her reservation pro.t. However, we show that in our market structure these two sophisticated contracts force the manufacturers to compete more aggressively than when they only offer wholesale-price contracts, and this may leave them worse o¤ and the retailer substantially better o¤. In other words, although in a serial supply chain a retailer may have just cause to fear quantity discounts and two-part tariffs, a retailer may actually prefer those contracts when offered by competing manufacturers. We conclude that the properties a contractual form exhibits in a one-manufacturer supply chain may not carry over to the realistic setting in which multiple manufacturers must compete to sell their goods through a single retailer.

Teaching

Current Courses

  • OIDD101 - Introduction To Oidd

    OIDD 101 explores a variety of common quantitative modeling problems that arise frequently in business settings, and discusses how they can be formally modeled and solved with a combination of business insight and computer-based tools. The key topics covered include capacity management, service operations, inventory control, structured decision making, constrained optimization and simulation. This course teaches how to model complex business situations and how to master tools to improve business performance. The goal is to provide a set of foundational skills useful for future coursework atWharton as well as providing an overview of problems and techniques that characterize disciplines that comprise Operations and Information Management.

    OIDD101001

    OIDD101002

    OIDD101201

    OIDD101202

    OIDD101203

    OIDD101204

Past Courses

  • OIDD101 - INTRODUCTION TO OIDD

    OIDD 101 explores a variety of common quantitative modeling problems that arise frequently in business settings, and discusses how they can be formally modeled and solved with a combination of business insight and computer-based tools. The key topics covered include capacity management, service operations, inventory control, structured decision making, constrained optimization and simulation. This course teaches how to model complex business situations and how to master tools to improve business performance. The goal is to provide a set of foundational skills useful for future coursework atWharton as well as providing an overview of problems and techniques that characterize disciplines that comprise Operations and Information Management.

  • OIDD615 - OPERATIONS STRATEGY

    Operations strategy is about organizing people and resources to gain a competitive advantage in the delivery of products (both goods and services) to customers. This course approaches this challenge primarily from two perspectives: 1) how should a firm design their products so that they can be profitably offered; 2) how can a firm best organize and acquire resources to deliver its portfolio of products to customers. To be able to make intelligent decisions regarding these high-level choices, this course also provides a foundation of analytical methods. These methods give students a conceptual framekwork for understanding the linkage between how a firm manages its supply and how well that supply matches the firm's resulting demand. Specific course topics include designing service systems, managing inventory and product variety, capacity planning, approaches to sourcing and supplier management, constructing global supply chains, managing sustainability initiatives, and revenue management. This course emphasizes both quantitative tools and qualitative frameworks. Neither is more important than the other.

Awards and Honors

  • INFORMS Fellow, 2015
  • Rapaport Award for Excellence in Teaching the Undergraduate Core, 2013
  • “Tough, but I’ll thank you in 5 years”, 2012
  • Manufacturing and Service Operations Management Society Fellow, 2011
  • Penn Fellow: One of six mid-career Penn faculty chosen for this leadership development program, 2011
  • M&SOM Best Paper Award Finalist 2010 for “In Search of the Bullwhip Effect”, 2010
  • “Tough, But I’ll Thank You in 5 Years Award”, 2009
  • MSOM Society Service award, 2008
  • Miller-Sherrerd teaching award: Awarded to the 8 professors with the highest core teaching evaluations, 2004
  • MSOM Meritorious Service award, 2004
  • Tough, But I’ll Thank You in 5 Years” Award, given by the Wharton Graduate Students Association, 2002
  • ‘Fuqua School of Business’ Daimler-Chrysler Teaching Award for Innovation and Excellence in an Elective Course, 1999

In the News

Knowledge @ Wharton

Activity

In the News

Frustrated by Surge Pricing? Here’s How It Benefits You in the Long Run

Companies like Uber and Lyft have been criticized recently because of their use of surge pricing. But new Wharton research shows that it actually benefits consumers.

Knowledge @ Wharton - 2016/01/5
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Awards and Honors

INFORMS Fellow 2015
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