[Problem Definition] We incorporate heterogeneous customer valuation and the strategic customer behavior in the classical economic order quantity (EOQ) setting. The seller incurs setup costs when replenishing inventory, and can set the prices differently over time and implement capacity...

Motivated by partial vertical integration practices, this paper investigates how a monopoly allocates a key input between the monopoly and his alliance(s) with complementary partner(s) for the delivery of final product or service. The firms' bargaining powers are endogenously impacted by the...

We study how the procurement process may help a buyer reduce purchasing costs under a dual-sourcing setting. First, we analyze the equilibrium outcomes when the buyer simultaneously or sequentially bilaterally negotiates with the suppliers. We establish coordination results and characterize the...