Many firms often face quality problems, even though quality improvement has long been a competitive imperative for performance enhancement. When suppliers are the sources of quality problems, prior literature has focused on sustaining a buyer’s competitiveness given the suppliers’ quality...

Companies, especially those in e-business, are increasingly offering free shipping to buyers whose order sizes exceed the free shipping quantity. In this paper, given that the supplier offers free shipping, we determine the retailer’s optimal order lot size and the optimal retail price. We...