In this paper, we analyze the interaction between revenue sharing and quality of order fulfillment that occurs in an Internet drop-shipping distribution system comprising an e-tailer and a supplier. The e-tailer manages sales activities and sends customer orders to the supplier, while the...

Most research on the process control charts concentrates on the economic design of its parameters. Reduction of variance as a control decision has not been researched. Presents a model for optimal decision on variance reduction and includes the rejection losses of the on‐conforming units...