In some retail contexts, higher inventories not only improve service levels, but also stimulate demand by serving as a promotional tool (e.g., by increasing product visibility). Motivated by a building-products retailer's practice of stocking large quantities of products to stimulate demand, we...

The impact of bundling of products in a supply chain has not been studied in the operations management literature. Furthermore, the existing models on bundling have analysed the impact of bundling on the retailer's profits and ignored its impact on the supplier's operations. We consider an...