Tailored Supply Chain Decision Making Under Price-Sensitive Stochastic Demand and Delivery Uncertainty

@article{Ray2005TailoredSC,
  title={Tailored Supply Chain Decision Making Under Price-Sensitive Stochastic Demand and Delivery Uncertainty},
  author={Saibal Ray and Shanling Li and Yuyue Song},
  journal={Management Science},
  year={2005},
  volume={51},
  pages={1873-1891}
}
I this paper, we study a serial two-echelon supply chain selling a procure-to-stock product in a price-sensitive market. Our analytical modelling framework incorporates optimal pricing and stocking decisions for both echelons in the presence of stochastic demand and random delivery times. We focus on understanding how these decisions for the chain are affected by its management paradigm (centralized or decentralized), and its business characteristics—price sensitivity, demand uncertainty, and… CONTINUE READING