We consider a single-period distribution system with one supplier and two retailers. The supplier may have infinite or finite capacity. The demand at each retailer is random. When a stockout occurs at one retailer the customer may go to the other retailer. We study both the decentralized and...

In this paper, we study a joint optimization problem of replenishment and pricing for a periodic-review inventory system with random supply capacity. When making replenishment and pricing decisions at the beginning of each period, the firm only knows the supplier's available capacity in the...