Price Versus Production Postponement: Capacity and Competition
Management Science
Selling to the Newsvendor: An Analysis of Price-Only Contracts
Manufacturing & Service Operations Management
Supply Chain Coordination Under Channel Rebates with Sales Effort Effects
Management Science
Managing Inventory Over a Short Season: Models with Two Procurement Opportunities
Manufacturing & Service Operations Management
Incentives for Retailer Forecasting: Rebates vs. Returns
Management Science
Expert Systems with Applications: An International Journal
Expert Systems with Applications: An International Journal
Does a Manufacturer Benefit from Selling to a Better-Forecasting Retailer?
Management Science
The benefit of information asymmetry: When to sell to informed customers?
Decision Support Systems
Order postponement in a supply chain in the presence of exponential demand with gamma prior
Operations Research Letters
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A fundamental decision for any manufacturer is when to sell to a downstream retailer. A manufacturer can sell either early, i.e., well in advance of the selling season, or late, i.e., close to the selling season. This paper examines the impact of information asymmetry, retailer sales effort, and contract type on the manufacturers sale-timing decision. We find that if information is symmetric, demand is not influenced by sales effort, and the contract specifies that the price paid is linear in the order quantity, the manufacturer prefers to sell late. This result extends to the case where the retailer exerts sales effort during the selling season. However, if the retailer exerts sales effort prior to the selling season or has superior information about market demand, the manufacturer may prefer to sell early. We characterize the manufacturers sale-timing preference in these settings, providing clear conditions under which the manufacturer prefers to sell either early or late. We show that the retailer, manufacturer, and total system may be hurt by the retailers having higher-quality information.