Consider a two-level inventory system consisting of one supplier and one retailer. The retailer faces a Poisson demand with a known rate and applies base stock (one-for-one ordering) policy. That is, his inventory position is set to a pre-determined level, so the demand pattern is transferred exactly to the supplier. The supplier has an inventory system and a service unit with exponentially dis...

Acknowledgements The authors acknowledge financial support from the AGSM and INSEAD and would like to thank Information Resources, Incorporated for the data and Peter McBurney, University of Liverpool for helpful comments on an earlier version of this paper. Abstract Competition among brands that sell through a supermarket chain is a repeated moderated oligopoly, where the retailer moderates br...

This paper considers a single-item, two-echelon, continuous-review inventory model. A number of retailers have their stock replenished from a central warehouse. The warehouse in turn replenishes stock from an external supplier. The demand processes on the retailers are independent Poisson. Demand not met at a retailer is lost. The order quantity from each retailer on the warehouse and from the ...

We study the effects of credit risk in a supply chain where one retailer deals with competing risky suppliers who may default during their production lead-times. The suppliers, who compete for business with the retailer by establishing wholesale prices, are leaders in a Stackelberg game with the retailer. The retailer, facing uncertain future demand, chooses order quantities while weighing the ...

The use of VMI at Wal-Mart on a large scale has attracted a great deal of attention in the industrial world. In a VMI program, the supplier assumes control of the inventory management for one or more retailers (Fry, 2002). The supplier monitors the inventory level at the retailers and makes the decisions related to the quantities of replenishment and the timing of shipments to the retailers. It...

We consider a cooperative advertising channel consisting of a manufacturer selling its product through a retailer in competition with another independent retailer. The manufacturer subsidizes its retailer’s advertising only when a certain threshold is positive. Moreover, the manufacturer’s support for its retailer is higher under competition than in its absence.

The main purpose of this paper is to investigate the retailer’s optimal replenishment policy under permissible delay in payments within the economic order quantity (EOQ) framework. Previously published articles dealing with optimal order quantity with permissible delay in payments assumed that the supplier only offers the retailer single trade credit period. In fact, most suppliers frequently o...

This paper investigates the economic order quantity (EOQ) — based inventory model for a retailer under two levels of trade credit to reflect the supply chain management situation in the fuzzy sense. It is assumed that the retailer maintains a powerful position and can obtain the full trade credit offered by the supplier yet the retailer just offers a partial trade credit to customers. The deman...

Consignment contracts have been widely employed in many industries. Under such contracts, items are sold at a retailer’s but the supplier retains the full ownership of the inventory until purchased by consumers; the supplier collects payment from the retailer based on actual units sold. We investigate how competition among retailers influences the supply chain decisions and profits under differ...

Considering the impact of products’ eco-friendly level on demand, a two-stage closed-loop supply chain composed by a single manufacturer and a single retailer is constructed. Under both decentralized and centralized decision-making models, the paper deeply researches into the difference of supply chain system in economic benefits, environmental protection and social benefits, and a revenue shar...