In this research, we consider a retailer selling products from two different generations, both with limited inventory over a predetermined selling horizon. Due to the spatial constraints or the popularity of a given product, the retailer may only display goods from one specific generation. If the transaction of the displayed item cannot be completed, the retailer may provide an alternative from...

This paper considers vertical restraints in the context of an intrabrand competition model in which a single manufacturer deals with two vertically differentiated retailers. We establish two main results. First, if the market cannot be vertically segmented, the manufacturer will foreclose the low quality retailer either directly by dealing exclusively with the high quality retailer, or indirect...

Coordinating supply chains has been a major issue in supply chain management research. This paper focuses on the coordination of supply chains with downside-risk-averse agents. Motivating by the revenue sharing contract, we developed the sufficient conditions for the coordination of the supply chain with one downside-risk-averse agent. Following the sufficient conditions, the downside protectio...

We consider a newsvendor problem in a supply chain that consists of a manufacturer and a retailer. The manufacturer is the Stackelberg leader and the retailer is the follower.We examine how themanufacturer can contract awholesale-price-only agreementwith its retailer thatmaximizes its profit.We also propose a returns policy with a wholesale-price-discount scheme (returns-discount contract) that...

This paper considered a single-item, three-echelon (supplier, retailer, and customer) inventory problem. At random times, the supplier offers the retailer a discount. The inter-arrival times of discounts are exponentially distributed. For the retailer, whether or not to take a discount offer depends on its inventory level. If inventory is below threshold level S, the retailer will order to repl...

This paper characterizes the class of Pareto optimal returns policies between a manufacturer and a retailer who receives consumer returns. The manufacturer may take a costly hidden action that reduces the expected number of products returned by consumers, which when realized is hidden information known only to the retailer. When faced with consumer returns, the retailer must decide whether to s...

We study ex ante information sharing in a supply chain consisting of a downstream retailer and a maketo-stock upstream manufacturer. The retailer has imperfect demand information and may choose to share it with the manufacturer. Based on the information sharing arrangement, the manufacturer makes the wholesale price and the stocking level decisions. Then the retailer decides the order quantity ...

In this paper, an integrated production-inventory model is presented for a supplier, manufacturer, and retailer supply chain under conditionally permissible delay in payments in uncertain environments. The supplier produces the item at a certain rate, which is a decision variable, and purchases the item to the manufacturer. The manufacturer has also purchased and produced the item in a finite r...

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...