Strategic Inventory and Supplier Encroachment

Problem definition: In a two-period model of a dyadic supply chain, we study the interaction between the use of strategic inventory withholding by the buyer and the use of a direct selling channel (encroachment) by the supplier in the second period. Academic/practical relevance: While the extant OM literature has individually examined the two strategies, the system-wide combined effect of these strategies has not been studied. Methodology: We...