The Impact of Quick Response in Inventory-Based Competition

  title={The Impact of Quick Response in Inventory-Based Competition},
  author={Felipe Caro and V{\'i}ctor Mart{\'i}nez-de-Alb{\'e}niz},
  journal={Manufacturing & Service Operations Management},
We propose a dynamic extension of the competitive newsvendor model of Lippman and McCardle (1997) to investigate the impact of quick response under competition. For this purpose, we consider two retailers that compete in terms of inventory: customers that face a stock-out at their first-choice store will look for the product at the other store. Consequently, the total demand that each retailer faces depends on the competitor’s inventory level. We allow for asymmetric reordering capabilities… CONTINUE READING


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