This study contributes to the periodic review inventory system literature by: (1) investigating customer service level (CSL) as a social responsibility in pharmaceutical supply chains (PSCs) and (2) proposing chain contracting achieve win–win coordination guarantee satisfied CSL. Specifically, considering demand uncertainty one of main challenges faced by pharmacies, we analyze how applying con...

A manufacturer must choose whether to delegate component procurement to her tier-1 supplier, or control it directly. Due to information asymmetry about suppliers’ production costs and the use of simple quantity discount or price-only contracts, either delegation or control can yield substantially higher expected profit for the manufacturer. Delegation tends to outperform control when (1) the ma...

nowadays in commercial contracts, parties communicate with together using standard forms. both the party's standards forms usually contain a description of the subject-matter, the price, the quantity and the delivery terms. such a situation is called the battle of forms. in such a case some questions are raised. does the exchange of the conflicting forms create a contract? if so, what are ...

T format of pricing contracts varies substantially across business contexts, a major variable being whether a contract imposes a fixed fee payment. This paper examines how the use of the fixed fee in pricing contracts affects market outcomes of a manufacturer-retailer channel. Standard economic theories predict that channel efficiency increases with the introduction of the fixed fee and is inva...

Recently, retailers who directly deal with poultry farmers increase in Japan. It therefore becomes necessary for the poultry farmers to deliver products to the retailers frequently in accordance with the retailers’ demand. The retailer purchases (raw) chicken meat from the poultry farmer. The stock of the poultry farmer increases due to growth, in contrast, the inventory level of the retailer i...

To attract and keep customers, companies, especially those in e-business, are increasingly offering free shipping to buyers whose order sizes exceed the free shipping quantity. In this paper, given the supplier offers free shipping and the retailer faces stochastic demand, we determine the retailer’s (i.e., the newsvendor’s) optimal order quantity and the optimal selling price simultaneously. W...