Abstract
It has been well documented that buyers can benefit significantly from being able to place reactive orders in response to observed demand for a short life cycle product. In practice, suppliers often fill these reactive orders with less than total reliability. Although reactive order fulfillment can allow the supply chain to capture more of the demand that is realized, it can also deter retailers from ordering as much initially. In this chapter, we investigate how this trade-off affects the retailers’ ordering behavior as well as the profits of the manufacturer, the retailers, and the supply chain as a whole. We also develop insight as to how a manufacturer should offer a reactive ordering policy.
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© 2002 Kluwer Academic Publishers
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Smith, C.E., Gilbert, S.M., Burnetas, A.N. (2002). Partial Quick Response Policies in a Supply Chain. In: Geunes, J., Pardalos, P.M., Romeijn, H.E. (eds) Supply Chain Management: Models, Applications, and Research Directions. Applied Optimization, vol 62. Springer, Boston, MA. https://doi.org/10.1007/0-306-48172-3_5
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DOI: https://doi.org/10.1007/0-306-48172-3_5
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4020-0487-2
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