We study a retailer's sourcing contract when the supplier's reservation profit (offered by his outside options) depends on his cost, which is privately known to only the supplier. An interesting discovery from our analysis is that supply chain coordination may be achieved despite the...

We analyze a supply chain consisting of a supplier and a retailer. The supplier's unit production cost, which characterizes his type, is only privately known to him. When trading with the retailer, the supplier demands a reservation profit that depends on his unit production cost. We model this...

We analyze a finite horizon periodic-review inventory model in the presence of advance purchase dis- count (APD). In addition to the opportunity to place a contingent order when required, the buyer can also commit to advance orders and receive discounts. Thus the buyer faces the following...

We study a drop-shipping supply chain in which the retailer receives a customer's order and the supplier fills it. In such a chain, the supplier keeps inventory and bears inventory risks; the retailer focuses on marketing and customer acquisition, and forwards the orders to the supplier. The...