The paper develops a simple theoretical model of inventory control in global supply chains. It identifies a role for intermediaries in managing inventory, and shows that inserting an intermediary as an additional link in a supply chain is profitable when demand volatility is high. It also...

This paper deals with a two-layer supply chain composed of one manufacturer and one retailer for single-type product. The demand function of the end customers depends on quality, warranty, and sales price of the product. The profit functions of the manufacturer and the retailers are maximized...