Abstract
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.
Original language | English |
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Pages (from-to) | 444-449 |
Number of pages | 6 |
Journal | Operations Research Letters |
Volume | 42 |
Issue number | 6-7 |
DOIs | |
Publication status | Published - 1 Jan 2014 |
Keywords
- Capital constraint
- Sourcing
- Two-order arrangement
ASJC Scopus subject areas
- Management Science and Operations Research
- Applied Mathematics
- Industrial and Manufacturing Engineering
- Software