Forecast sharing is studied in a supply chain with a manufacturer that faces stochastic demand for a single product and a supplier that is the sole source for a critical component. The following sequence of events occurs: the manufacturer provides her initial forecast to the supplier along with a contract, the supplier constructs capacity (if he accepts the contract), the manufacturer receives ...

A proposed single-product, stochastic, two-period inventory control model combines demand forecast updating with the flexibility of two supply sources. Demand is modeled by two independent, random variables over a two-period selling season. At the beginning of the first period, two quantities are ordered using two different supply options: a local supplier who delivers the ordered quantity imme...

We study a firm’s cost-based sourcing decision of whether to invest in an incumbent supplier or switch to an alternative supplier in order to realise lower purchasing costs. In isolation, it can be shown that the development of an incumbent supplier (i.e., a cooperative investment) becomes more attractive, the higher the uncertainty about the price the buying firm can realise on the market and ...

We study a two-level uncapacitated lot-sizing problem with inventory bounds that occurs in a supply chain composed of a supplier and a retailer. The first level with the demands is the retailer level and the second one is the supplier level. The aim is to minimize the cost of the supply chain so as to satisfy the demands when the quantity of item that can be held in inventory at each period is ...

This experiment examines the relationship between payment systems and quality quantity of services provided in credence goods markets. By using a real-effort task to stimulate decision making service providers, study finds that do indeed have an impact on provision. Specifically, providers fee-for-service over-provide, while those salary under-provide services. Additionally, there is lack align...

We consider a supply chain in which orders and lead times are linked endogenously, as opposed to assuming lead times are exogenous. This assumption is relevant when a retailer’s orders are produced by a supplier with finite capacity and replenished when the order is completed. The retailer faces demands that are correlated over time – either positively or negatively – which may, for example, be...

In Ireland, approximately 30% of the population receive free GP services (medical card patients) while the remainder (private patients) must pay for each visit. In 1989, the manner in which GPs were reimbursed by the State for their medical card patients was changed from fee-for-service to capitation while private patients continued to pay on a fee-for-service basis. Concerns about supplier-ind...

Firms engaged in consumer product sales often implement a strict make-to-stock approach, applying a single price to all customers. In such systems, customers can get the product at the given price upon availability on the shelf. However, consumers can often tolerate a delay between order placement and demand satisfaction under a price discount. Recognizing this phenomenon, a supplier may consid...

The integration of renewable generation poses operational and economic challenges for the electricity grid. For the core problem of power balance, the legacy paradigm of tailoring supply to follow random demand may be inappropriate under deep penetration of uncertain and intermittent renewable generation. In this situation, there is an emerging consensus that the alternative approach of control...