In many industries, product design and manufacturing lead-times are sufficiently long that both the quality level of a product and the amount of inventory produced must be determined before a firm knows what the actual demand will be. In this paper, we conduct a theoretical analysis of such a...

In recent years, there has been an increasing trend in supply chains to employ a “control tower” approach to improve supply chain performance. Such a strategy includes vendor- or supplier-managed-inventory (VMI or SMI) where the supplier takes over the control tower, and the other strategy...