This paper examines how managerial short-termism can affect a firm's inventory decision when external investors have only partial information about the firm's demand uncertainty. We first study the scenario where the manager's short-termism is exogenously given. We derive the full equilibrium...

Problem definition: We study how a firm should design its compensation plan to include both the sales performance and the operational performance (i.e., the supply/demand mismatch), for its sales division, who not only exerts unobservable demand-enhancement efforts but also makes the inventory...

We study inventory management for a blood center that periodically collects whole blood and processes it into multiple blood products such as red blood cells and platelets. The blood center may also be able to collect a single blood product by apheresis. With limited lifetimes, blood products...

Problem Definition: Although it is well known that a reseller’s ability to hold strategic inventory under a short-term supply contract can potentially benefit both the reseller and a supplier, existing research on strate- gic inventory focuses almost exclusively on exclusive reselling...

It is now widely accepted that a retailer’s use of strategic inventory can mitigate double marginalization and improve the coordination of a supply chain, potentially benefitting both the downstream retailer and an upstream manufacturer. However, this conclusion has typically been based on the...