Emerging technologies such as drone delivery services enable retailers to cost-effectively offer unprecedented delivery speed and adaptable delivery lead times using dedicated aerial vehicles for individual orders. A natural and important question arises: What is the impact of a drone delivery...

This paper studies an inventory management problem faced by an upstream supplier who is in a collaborative agreement, such as vendor managed inventory (VMI), with a retailer. A VMI partnership provides the supplier an opportunity to manage inventory for the supply chain, in exchange for...

We consider a decentralized supply chain where a supplier sells goods to a retailer facing a general random demand over an infinite horizon. The retailer satisfies the demand to the extent of the inventory on hand. The retailer has private information about his inventory in each period and the...