Lee, Jun-Yeon; Cho, Richard K. - In: International Journal of Production Economics 151 (2014) C, pp. 158-173
We examine the problem of designing a vendor-managed inventory (VMI) contract with consignment stock and stockout-cost sharing in a (Q, r) inventory system between a supplier and a retailer. In particular, the contract specifies fixed and proportional penalties charged to the supplier when...