Alleviating supplier's capital restriction by two-order arrangement

Li Jiang, Zhongyuan Hao

Research output: Journal article publicationJournal articleAcademic researchpeer-review

20 Citations (Scopus)


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 languageEnglish
Pages (from-to)444-449
Number of pages6
JournalOperations Research Letters
Issue number6-7
Publication statusPublished - 1 Jan 2014


  • Capital constraint
  • Sourcing
  • Two-order arrangement

ASJC Scopus subject areas

  • Management Science and Operations Research
  • Applied Mathematics
  • Industrial and Manufacturing Engineering
  • Software


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