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This paper studies distribution channel structure strategies (to centralize or decentralize) for two competing supply chains that sell substitutable products with price and lead-time sensitive demand. We find that centralization (decentralization) associates with itself a price (lead-time)...
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Problem definition: We study a supply chain with one supplier and one retailer. The supplier sets the wholesale price to maximize her profit, whereas the retailer is target-oriented and decides the order quantity to maximize his ability to reach a target profit. Academic/Practical relevance: Our...
Persistent link: https://www.econbiz.de/10012842138
This paper studies the impact of supply chain power structure on firms' profitability in an Assemble-to-Order (ATO) system with one assembler and two component suppliers. Between the assembler and each of its suppliers, either the supplier has dominating power and acts as the Stackelberg leader...
Persistent link: https://www.econbiz.de/10012857184
Problem definition: Strategic inventory refers to the inventory held by firms purely out of strategic considerations other than operational reasons (e.g., economies of scale). In this paper, we investigate the roles of strategic inventory in a system with two parallel supply chains under both...
Persistent link: https://www.econbiz.de/10014351569
We study a supply chain with one supplier and many retailers that face exogenous end-customer demands. The supplier and the retailers all try to minimize their own inventory-related costs. In contrast to the retailers’ newsvendor-type ordering behavior (under which retailers may place orders...
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