The structure of periodic review policies in the presence of random yield
Operations Research
Diversification under supply uncertainty
Management Science
A Newsvendor's Procurement Problem when Suppliers Are Unreliable
Manufacturing & Service Operations Management
The Optimal Composition of Influenza Vaccines Subject to Random Production Yields
Manufacturing & Service Operations Management
Cognitive mobile virtual network operator: investment and pricing with supply uncertainty
INFOCOM'10 Proceedings of the 29th conference on Information communications
Supplier Diversification Strategies in the Presence of Yield Uncertainty and Buyer Competition
Manufacturing & Service Operations Management
Advance Selling in a Supply Chain Under Uncertain Supply and Demand
Manufacturing & Service Operations Management
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This paper is inspired by the recurring mismatch between demand and supply in the U.S. influenza vaccine market. Economic theory predicts that an oligopolistic market with unregulated but costly entry will experience excess entry and oversupply, not the undersupply observed in the market for influenza vaccine in recent years. In this paper, we examine the interaction between yield uncertainty, a key characteristic of many production processes, including that for influenza vaccine, and firms' strategic behavior. We find that yield uncertainty can contribute to a high degree of concentration in an industry and a reduction in the industry output and the expected consumer surplus in equilibrium. We use parameter values loosely based on the U.S. influenza vaccine market to numerically illustrate the impact of yield uncertainty.