We study a drop-shipping supply chain in which the retailer receives a customer's order and the supplier fills it. In such a chain, the supplier keeps inventory and bears inventory risks; the retailer focuses on marketing and customer acquisition, and forwards the orders to the supplier. The...

The extant supply chain management literature has not addressed the issue of coordination in supply chains involving risk-averse agents. We take up this issue and begin with defining a coordinating contract as one that results in a Pareto-optimal solution acceptable to each agent. Our definition...

In “Coordination of Supply Chains with Risk-Averse Agents” (POMS, Volume 13, 2004), we study the issue of coordination in supply chains involving risk-averse agents, and define a coordinating contract as one that results in a Pareto-optimal solution acceptable to each agent. We then develop...