QU, Zhan; Raff, Horst; Schmitt, Nicolas - Institut für Weltwirtschaft (IfW) - 2015
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 provides conditions under which the intermediary handling inventory is located in …