Traditional supply chain inventory modes with trade credit usually only assumed that the up-stream suppliers offered the down-stream retailers a fixed credit period. However, in practice the retailers will also provide a credit period to customers to promote the market competition. In this paper, we formulate an optimal supply chain inventory model under two levels of trade credit policy with d...

We investigate the strategic incentives for partial vertical integration, namely, partial ownership agreements between manufacturers and retailers, when the retailers privately know their costs and engage in differentiated good price competition. The partial misalignment between the profit objectives within a partially integrated manufacturer-retailer hierarchy entails a higher retail price tha...

We study the coordination of actions and the allocation of profit in supply chains under decentralized control in which a single supplier supplies several retailers with goods for replenishment of stocks. The goal of the supplier and the retailers is to maximize their individual profits. Since the outcome under decentralized control is inefficient, cooperation among firms by means of coordinati...

With the development of e-commerce, many wholesale suppliers establish direct channels competing with their retailers. Such competition is often referred to as supplier encroachment. Previous studies assume the perfect rationality of retailers. However, supplier encroachment may trigger the fairness concerns of the retailers as a supplier is also a competitor of its retailer if the supplier enc...

Previous academic research on the expansion of dominant retailers such as Wal-Mart has looked at implications for incumbent retailers, consumers, and the local community. Little is known, however, about Wal-Mart’s influence on suppliers’ performance. Manufacturers suggest Wal-Mart uses its power to squeeze their profits. In this paper we study the validity of that claim. We investigate the unde...

W model a situation in which two retailers consider launching an “Advance Booking Discount” (ABD) program. In this program, customers are enticed to precommit their orders at a discount price prior to the regular selling season. However, these precommitted orders are filled during the selling season. While the ABD program enables the retailers to lock in a portion of the customer demand and use...

We study a repeated newsvendor game with transshipments. In every period n retailers face a stochastic demand for an identical product and independently place their inventory orders before demand realization. After observing the actual demand, each retailer decides how much of her leftover inventory or unsatisfied demand she wants to share with the other retailers. Residual inventories are then...

The number of retailers who directly deal with poultry farmers recently increases in Japan. It therefore becomes necessary for the poultry farmers to deliver products to the retailers frequently in accordance with the retailers’ demand. The poultry farmer’s inventory level increases due to the increase in the weight of the fowls, but at the same time, it decreases due to loss of the commercial ...

Generators in a wholesale electricity market can exercise market power, but the existence of forward hedging contracts between consumers and generators mitigates this market power. A question arises as to why generators are willing to enter contracts with consumers to surrender their market power. In this paper, we model the role of the consumers (retailers here) in offering hedging contracts t...

We study a supply chain network equilibrium model for perishable products under the theory of discrete choice models, which comprises multiple perishable product manufacturers, distributors and retailers. Our goal is to present equilibrium outputs for different firms in this supply chain network model for perishable products based on retailers’ utility maximization. The network model is built u...