Order postponement in a supply chain in the presence of exponential demand with gamma prior

Authors:
Chunyang Tong
Affiliations:
School of International Business Administration, Shanghai University of Finance and Economics, Shanghai, China
Venue:
Operations Research Letters
Year:
2010

Citing 7
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Abstract

We show for products featuring an exponential demand with Gamma prior, if the demand forecast improves over time and the manufacturer sets the wholesale price, the expected order size increases when the order is placed later. Both the manufacturer and the retailer gain when the order is placed later.