Problem definition: Manufacturers' production capacity may be disrupted as a result of a pandemic outbreak, trade frictions, military conflicts, etc. This paper develops a two-period supply chain model with disruption risk in the second period to investigate firms' inventory decisions and the...

This paper studies the role of product availability in attracting consumer demand. We start with a newsvendor model, but additionally assume that stockouts are costly to consumers. The seller sets an observable price and an unobservable stocking quantity. Consumers anticipate the likelihood of...