Strategic Inventories in a Supply Chain with Downstream Cournot Duopoly

  title={Strategic Inventories in a Supply Chain with Downstream Cournot Duopoly},
  author={Xiaowei Hu and Jaejin Jang and Nabeel Hamoud and Amirsaman H. Bajgiran},
  journal={International Journal of Operational Research},
The inventories carried in a supply chain as a strategic tool to influence the competing firms are considered to be strategic inventories (SI). We present a two-period game-theoretic supply chain model, in which a singular manufacturer supplies products to a pair of identical Cournot duopolistic retailers. We show that the SI carried by the retailers under dynamic contract is Pareto-dominating for the manufacturer, retailers, consumers, the channel, and the society as well. We also find that… Expand

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