Consider a manufacturer that offers an advance payment to pre-order a quantity that must be satisfied by the production of a supplier before actual demand arises, and can order more after demand arises. We study the effectiveness of such two-order arrangement in alleviating the supplier's capital restriction on channel performance.
- Capital constraint
- Two-order arrangement
ASJC Scopus subject areas
- Management Science and Operations Research
- Applied Mathematics
- Industrial and Manufacturing Engineering