Established findings suggest that strategic inventory may alleviate double marginalization and improve the efficiency of a decentralized distribution channel. In this paper, we examine the effect of strategic inventory in the presence of chain-to-chain competition. We show that as the...

[Problem Definition] We incorporate heterogeneous customer valuation and the strategic customer behavior in the classical economic order quantity (EOQ) setting. The seller incurs setup costs when replenishing inventory, and can set the prices differently over time and implement capacity...

In the traditional channel, a retailer stocks the product from a manufacturer and sells it to consumers. In contrast, the retailer in the drop-shipping channel relays the consumers’ requests to the manufacturer who stocks and delivers the product to consumers. Due to their different...

In recent economic and business environment, firms, especially startups, are interested in financial opportunities, such as capital raising and acquisition. Typically, potential investors will be attracted by firms that exhibit nice trends of profit growth, and therefore firms need to manage...

Prior studies on decentralized supply chains have identified the downstream retailer’s strategic incentive of holding inventory in successive periods to bring down the upstream supplier’s wholesale price. This creates an opportunity to mitigate double marginalization and improve the overall...