Supply chain coordination with manufacturer's limited reserve capacity: An extended newsboy problem

@inproceedings{Li2008SupplyCC,
  title={Supply chain coordination with manufacturer's limited reserve capacity: An extended newsboy problem},
  author={Jianli Li and Liwen Liu},
  year={2008}
}
This paper develops an extended newsboy model and presents a coordination decision policy in a supply chain consisting of one manufacturer and one retailer. In order to meet a random demand, the retailer can place a second order at the end of the period if a stock-out occurs. The manufacturer's reserve capacity for the retailer's second order is limited to M units. To maximize each individual's expected profit, the retailer decides his optimal order quantity and the manufacturer decides his… CONTINUE READING
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