The Bayesian Newsvendors in Supply Chains with Unobserved Lost Sales
نویسندگان
چکیده
We consider two−echelon supply chains with one supplier and two retailers. Retailers are censored newsvendors facing general parametric demand distributions involving unknown parameters. Using a Bayesian MDP formulation, we investigate how the supplier can make use of the combined information gathered from the retailers’ sales data to increase channel pro ts. We compare among the following three scenarios: (i) supplier shares her (pooled) demand distribution updates with the retailers, (ii) supplier does not use pooled updates, and (iii) integrated rm. We show that buy−back contracts achieve channel coordination in the above system. Published: August 2, 2004 URL: http://www.business.uiuc.edu/Working_Papers/papers/04−0110.pdf The Bayesian Newsvendors in Supply Chains with Unobserved Lost Sales Arnab Bisi David Glenn Martin L. Puterman Faculty of Commerce and Business Administration University of British Columbia 2053 Main Mall Vancouver, B.C., Canada V6T 1Z2
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