Quick response in manufacturer-retailer channels
Management Science - Special issue on frontier research in manufacturing and logistics
Price Versus Production Postponement: Capacity and Competition
Management Science
Production Planning Under Yield and Demand Uncertainty with Yield-Dependent Cost and Price
Manufacturing & Service Operations Management
Resource Flexibility with Responsive Pricing
Operations Research
Pricing and Operational Recourse in Coproduction Systems
Management Science
Supply Chain Coordination and Influenza Vaccination
Operations Research
Selecting a Portfolio of Suppliers Under Demand and Supply Risks
Operations Research
Cournot Competition Under Yield Uncertainty: The Case of the U.S. Influenza Vaccine Market
Manufacturing & Service Operations Management
Optimal Supply Diversification Under General Supply Risks
Operations Research
The Optimal Composition of Influenza Vaccines Subject to Random Production Yields
Manufacturing & Service Operations Management
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We examine three selling strategies of a manufacturer who produces and sells a seasonal product to a retailer under uncertain supply and demand: 1 advance selling---presells the product before observing uncertain supply and demand; 2 regular selling---sells the product after supply and demand are realized; and 3 dynamic selling---combines both advance and regular selling strategies. We model the first two strategies as single-period Stackelberg games, and we model the last strategy as a two-period dynamic Stackelberg game. By comparing the equilibria of these games, we formalize our understanding of several intuitive results. For example, from the manufacturer's perspective, dynamic selling dominates advance selling and regular selling: having more selling opportunities is beneficial to the manufacturer. However, from the retailer's perspective, we find two counterintuitive results: a postponing the ordering decision can be detrimental---the retailer can be worse off under regular selling than under advance selling; and b more ordering opportunities can be detrimental---the retailer can be worse off under dynamic selling than under advance selling. In addition, we analyze the impact of supply and demand uncertainties under these strategies and find that both types of uncertainties can be beneficial to the retailer.