Recent research suggests that the sales rate of a product would increase immediately after a seller posts a "scarcity message" to alert potential consumers that there are only a few units left in inventory. Knowing this effect, should an online seller post scarcity messages? In this technical...

This paper undertakes two related tasks to augment current understanding regarding vendor-owned inventory management (VOIM) arrangements implemented in the retail industry. The first task formally juxtaposes three prevalent forms of VOIM arrangements (i.e., Consignment, Pay-On-Scan, and...

Efficiently managing inventories requires an accurate estimation of stockout costs. This estimation is complicated by challenges in determining how to compensate consumers monetarily to ensure they will maintain the same level of utility they would have obtained had stockouts not occurred. This...

Internet retailers intermediate online markets by setting prices, matching wholesalers' supply with consumers' demand, affording inventory liquidity, and meeting fulfillment guarantees to consumers. Little attention has been given to studying the two latter intermediation functions. To fill this...