We study contracting for a three-tier supply chain consisting of a buyer, a supplier, and a sub-supplier where disruptions of random length occur at the sub-supplier. As is common in supply chains, the buyer has a direct relationship with the supplier but not the sub-supplier; that is, the buyer...

The risk of supply disruption increases as firms seek to procure from cheaper, but unproven, suppliers. In this paper, we model a supply chain consisting of a single buyer and two suppliers, both of whom compete for the buyer's order and face risk of supply disruption. One supplier is...

We consider a decentralized supply chain in which a downstream manufacturer purchases components from an upstream supplier privileged with private information about supply disruption risk. The supplier's initial reliability, asymmetric to the manufacturer, is either low or high. We examine two...