We develop a general framework for the analysis of decentralized distribution systems. We carry the analysis in terms of a simplified model which entails N retailers who face stochastic demands and hold stocks locally and/or at one or more central locations. An exogenously specified fraction of...

In the last two decades or so, a significant emphasis of the research literature in operations management has been on the strategic interaction of firms in a supply chain. Individual firms in supply chains make decisions on multiple levers such as capacity, inventory and price, to name a few,...