Modeling and Analysis of the Impact of Demand Seasonality on Post-merger Synergy

Li Tan and Shenghan Xu. In Proceedings of INFORMS annual conference (INFORMS'09). San Diego, CA. October, 2009.

M&As bring opportunity for companies to streamline supply chains. To fully benefit from the possible synergy, a merged company has to consider how the seasonal demand patterns of its original and adopted products may affect logistic cost. We model and analyze supply-chain consolidation of various settings, and we study the seasonal demand variance of products and study its impact on post-merger synergy. We propose two metrics for demand seasonality and identify their relations to the synergy.