We consider a supply chain in which a producer supplies a fresh product, through a third-party logistics (3PL) provider, to a distant market where a distributor purchases and sells it to end customers. The product is perishable, both the quantity and quality of which may deteriorate during the...

Keren [The single-period inventory problem: extension to random yield from the perspective of the supply chain. Omega 2009;37:801–10] considers a supply chain in which the distributor faces a known demand and orders from the producer subject to a random production yield, and shows that the...

This paper explores a generalized supply chain model subject to supply uncertainty after the supplier chooses the production input level. Decentralized systems under wholesale price contracts are investigated, with double marginalization effects shown to lead to supply insufficiencies, in the...