Hung, Yick-Hin; Li, Leon Y.O.; Cheng, T.C.E. - In: International Journal of Production Economics 143 (2013) 2, pp. 567-573
We consider a two-stage newsvendor model of a sub-industry in which suppliers have short lead-time capacity to produce goods for retailers that are selling non-identical products. We argue that the inventory and supply risks of the newsvendors due to demand uncertainty can be pooled and shared...