This paper analyzes optimal auction design when delivery of supply is uncertain. We consider a buyer facing multiple potential suppliers, each having an associated (exogenous) reliability that quantifies its risk of supply failure. We design optimal mechanisms that depend on the buyer's level of...

Firms mitigate uncertainty in demand and supply by carrying safety stock, planning for excess capacity and diversifying supply sources. In this study, we provide a framework to jointly optimize these three levers in a periodic review infinite horizon setting, and in particular we examine how one...

Marketplace platforms such as Amazon or Farfetch provide a convenient meeting point between customers and suppliers and have become an important element of e-commerce. This sales channel is particularly interesting for suppliers that sell seasonal goods under a tight time frame, because they...