Strategic inventories in a supply chain with downstream Cournot duopoly

The inventories carried in a supply chain as strategic tool to influence the competing firms are considered be (SI). We present two-period game-theoretic model, which singular manufacturer supplies products pair of identical Cournot duopolistic retailers. show that SI by retailers under dynamic contract is Pareto-dominating for manufacturer, retailers, consumers, channel, and society well. also find retailer's SI, however, can eliminated when commits wholesale or inventory holding cost too high. In comparing cases with without downstream competition, we duopoly undermines profits, but benefits all others.