Corbett, Charles J.; DeCroix, Gregory A. - In: Management Science 47 (2001) 7, pp. 881-893
There are many materials for which the quantity needed by a firm is at best indirectly related to the quantity of final product produced by that firm, such as solvents in manufacturing processes or office supplies. For any such "indirect" materials, an inescapable incentive conflict exists: The...