The effect of commonality on safety stock in a simple inventory model
Management Science
A generalized quantity discount pricing model to increase supplier's profits
Management Science
Component commonality with service level requirements
Management Science
Modelling emergency lateral transshipments in inventory systems
Management Science
Information distortion in a supply chain: the bullwhip effect
Management Science - Special issue on frontier research in manufacturing and logistics
Centralization of Stocks: Retailers Vs. Manufacturer
Management Science
Price Protection in the Personal Computer Industry
Management Science
A Supplier's Optimal Quantity Discount Policy Under Asymmetric Information
Management Science
A Smart Market for Industrial Procurement with Capacity Constraints
Management Science
Models for Supply Chains in E-Business
Management Science
Supply chain information sharing in a macro prediction market
Decision Support Systems
Strategic Investments, Trading, and Pricing Under Forecast Updating
Management Science
Competitive Options, Supply Contracting, and Electronic Markets
Management Science
Strategic Investments, Trading, and Pricing Under Forecast Updating
Management Science
Supply Auctions and Relational Contracts for Procurement
Manufacturing & Service Operations Management
Codifiability, Relationship-Specific Information Technology Investment, and Optimal Contracting
Journal of Management Information Systems
Journal of Management Information Systems
How Does Information Technology Shape Supply-Chain Structure? Evidence on the Number of Suppliers
Journal of Management Information Systems
Multiple Sourcing and Procurement Process Selection with Bidding Events
Management Science
The Complementary Effects of E-Markets on Existing Supplier-Buyer Relationships in a Supply Chain
Journal of Management Information Systems
A review of research on e-marketplaces 1997-2008
Decision Support Systems
A supply chain as a network of auctions
Decision Support Systems
Supply Chain Competition with Multiple Manufacturers and Retailers
Operations Research
Sourcing Flexibility, Spot Trading, and Procurement Contract Structure
Operations Research
Wireless Personal Communications: An International Journal
A Multiechelon Inventory Problem with Secondary Market Sales
Management Science
A generalized model of partial resale
Decision Support Systems
Transshipment and safety stock under stochastic supply interruption in a production system
Computers and Industrial Engineering
Modeling supply contracts in semiconductor supply chains
Proceedings of the Winter Simulation Conference
On the Equilibrium Behavior of a Supply Chain Market for Capacity
Manufacturing & Service Operations Management
Managing Storable Commodity Risks: The Role of Inventory and Financial Hedge
Manufacturing & Service Operations Management
Hi-index | 0.01 |
This paper investigates the impacts of a secondary market where resellers can buy and sell excess inventories. We develop a two-period model with a single manufacturer and many resellers. At the beginning of the first period resellers order and receive products from the manufacturer, but at the beginning of the second period, they can trade inventories among themselves in the secondary market. We endogenously derive the optimal decisions for the resellers, along with the equilibrium market price of the secondary market. The secondary market creates two interdependent effects--a quantity effect (sales by the manufacturer) and an allocation effect (supply chain performance). The former is indeterminate; i.e., the total sales volume for the manufacturer may increase or decrease, depending on the critical fractile. The latter is always positive; i.e., the secondary market always improves allocative efficiency. The sum of the effects is also unclear--the welfare of the supply chain may or may not increase as a result of the secondary market. Lastly, we study potential strategies for the manufacturer to increase sales in the presence of the secondary market.