On manufacturing/marketing incentives
Management Science
Investment Strategies for Flexible Resources
Management Science
Centralization of Stocks: Retailers Vs. Manufacturer
Management Science
Decentralized Multi-Echelon Supply Chains: Incentives and Information
Management Science
Competitive and Cooperative Inventory Policies in a Two-Stage Supply Chain
Management Science
Coordinating Investment, Production, and Subcontracting
Management Science
Multistage Inventory Management with Expediting
Operations Research
A General Framework for the Study of Decentralized Distribution Systems
Manufacturing & Service Operations Management
Selling to the Newsvendor: An Analysis of Price-Only Contracts
Manufacturing & Service Operations Management
A Two-Location Inventory Model with Transshipment and Local Decision Making
Management Science
Centralized and Competitive Inventory Models with Demand Substitution
Operations Research
Who Benefits from Transshipment? Exogenous vs. Endogenous Wholesale Prices
Management Science
Revenue Management Through Dynamic Cross Selling in E-Commerce Retailing
Operations Research
Inventory and distribution strategies for retail/e-tail organizations
Computers and Industrial Engineering
Price-only contracts with backup supply
Operations Research Letters
Coordinated Drop Shipping Commitment Contract in Dual-Distribution Channel Supply Chain
Journal of Electronic Commerce in Organizations
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Internet companies extensively use the practice of drop-shipping, where the wholesaler stocks and owns the inventory and ships products directly to customers at retailers request. Under the drop-shipping arrangement, the supply chain benefits from risk pooling because the inventory for multiple retailers is stocked at the same location, the wholesalers. Another more traditional channel alternative on the Internet is one in which retailers stock and own the inventory. These two supply chain structures, which predominate on the Internet, result in different inventory risk allocation, stocking decisions, and profits for channel members. Moreover, the two channel alternatives can be combined into a dual strategy whereby the retailer uses local inventory as a primary source and relies on drop-shipping as a backup. We model the dual strategy as a noncooperative game among the retailers and the wholesaler, analyze it, and obtain insights into the structural properties of the equilibrium solution to facilitate development of recommendations for practicing managers. Finally, we characterize situations in which each of three channels is preferable by specifying appropriate ranges of critical parameters, including demand variability, the number of retailers in the channel, wholesale prices, and transportation costs.