Nonlinear programming: theory, algorithms, and applications
Nonlinear programming: theory, algorithms, and applications
Channel coordination and quantity discounts
Management Science
Competitive and Cooperative Inventory Policies in a Two-Stage Supply Chain
Management Science
Selling to the Newsvendor: An Analysis of Price-Only Contracts
Manufacturing & Service Operations Management
Supply Chain Inventory Management and the Value of Shared Information
Management Science
Do Returns Policies Intensify Retail Competition?
Marketing Science
Reply to "Do Returns Policies Intensify Retail Competition?"
Marketing Science
Management Science
Editorial---Introduction to the Special Classics Issue
Marketing Science
Optimal Pricing and Return Policies for Perishable Commodities
Marketing Science
Incentives for Retailer Forecasting: Rebates vs. Returns
Management Science
On the unimodality of the manufacturer's objective function in the newsvendor model
Operations Research Letters
Returns Policies Between Channel Partners for Durable Products
Marketing Science
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The pioneering Pasternack returns-policy model analyzed channel coordination with a single supplier catering to a retailer facing stochastic demand for a perishable product with a fixed price, and the model showed that giving partial returns of unsold stock to the retailer is the optimal policy for the entire supply chain. The result thus begs the question as to why manufacturers of perishable commodities widely accept full returns of unsold stock as the norm. We model the environment as one where two capacity-constrained manufacturers compete for shelf space with the same retailer, and we show that a complete-credit returns policy is in fact the only possible equilibrium of the game. Our results obviate the need for knowing the exact functional form of the demand distribution in order to compute the returns credit, as Pasternack's results would require. From a retailer's standpoint, we establish a simple procurement strategy and show that it is optimal. The same game with price-only contracting has a pure-strategy equilibrium when the supplier capacities are below a threshold value and a mixed-strategy equilibrium when the supplier capacities cross this threshold but are still so limited that no single supplier can with certainty supply all the quantity demanded.