In many supply chains, the manufacturer sells not only through an independent retailer, but also through its own direct channel. This work studies the pricing and assortment decisions in such a supply chain in the presence of inventory costs. In our model, the retailer offers a subset of the...

Consider a firm selling a configurable product (e.g., a computer), which is a combination of a required component (e.g., processor) and an optional component (e.g., a speaker). Each component's assortment allows the consumer to choose from several variants (e.g., processors with different...