Two main problems have been emerging in supply chain management: the increasing pressure to reduce working capital and the growing variety of products. Most of the popular indicators have been developed based on a controlled environment. A new indicator is now proposed, based on the uncertainty...

Purpose – The purpose of this paper is to provide a new modelling framework for distribution network strategy and to study how various transfer-pricing schemes cope with stochastic demand under different countries tax policies. Design/methodology/approach – Use is made of real options to...