Procurement strategies of retailers under competition with volatile component prices

Open Access

Issue		RAIRO-Oper. Res. Volume 60, Number 1, January-February 2026


Page(s)		99 - 120
DOI		https://doi.org/10.1051/ro/2025157
Published online		06 February 2026

C.L. Li and P. Kouvelis, Flexible and risk-sharing supply contracts under price uncertainty. Manage. Sci. 45 (1999) 1378–1398. [Google Scholar]
B. Fisher and A. Kumar, The right way to hedge. McKinsey Quarterly. http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-right-way-to-hedge. [Google Scholar]
S. Chen, J. Lei and K. Moinzadeh, When to lock the volatile input price? Procurement of commodity components under different pricing schemes. Manuf. Serv. Oper. Manage. 24 (2021) 1183–1201. [Google Scholar]
S.L. Yang and Y.W. Zhou, Two-echelon supply chain models: considering duopolistic retailers’ different competitive behaviors. Int. J. Prod. Econ. 103 (2006) 104–116. [Google Scholar]
R.R. Chen and P. Roma, Group buying of competing retailers. Prod. Oper. Manage. 20 (2011) 181–197. [Google Scholar]
P. Berling and V. Martínez-de Albéniz, Optimal inventory policies when purchase price and demand are stochastic. Oper. Res. 59 (2011) 109–124. [Google Scholar]
P. Kouvelis, R. Li and Q. Ding, Managing storable commodity risks: the role of inventory and financial hedge. Manuf. Serv. Oper. Manage. 15 (2013) 507–521. [Google Scholar]
S. Dasu and J. de la Torre, Optimizing an international network of partially owned plants under condisions of trade liberalization. Manage. Sci. 43 (1997) 313–333. [Google Scholar]
O. Boyabatli, P.R. Kleindorfer and S.R. Koontz, Integrating long-term and short-term contracting in beef supply chains. Manage. Sci. 57 (2011) 1771–1787. [CrossRef] [Google Scholar]
A. Burnetas and S. Gilbert, Future capacity procurements under unknown demand and increasing costs. Manage. Sci. 47 (2001) 979–992. [Google Scholar]
D. Turcic, P. Kouvelis and E. Bolandifar, Hedging commodity procurement in a bilateral supply chain. Manuf. Serv. Oper. Manage. 17 (2015) 221–235. [Google Scholar]
P. Kouvelis, D. Turcic and W. Zhao, Supply chain contracting in environments with volatile input prices and frictions. Manuf. Serv. Oper. Manage. 20 (2018) 130–146. [Google Scholar]
A. Goel and G.J. Gutierrez, Multiechelon procurement and distribution policies for traded commodities. Manage. Sci. 57 (2011) 2228–2244. [CrossRef] [Google Scholar]
G. Xiao, N. Yang and R. Zhang, Dynamic pricing and inventory management under fluctuating procurement costs. Manuf. Serv. Oper. Manage. 17 (2015) 321–334. [Google Scholar]
W. Xing, L. Liu, F. Zhang and Q. Zhao, The bright side of price volatility in global commodity procurement. Manage. Sci. 71 (2024) 3472–3484. [Google Scholar]
B.A. Kalymon, Stochastic prices in a single-item inventory purchasing model. Oper. Res. 19 (1971) 1434–1458. [Google Scholar]
J.L. Assuncao and R.J. Meyer, The rational effect of price promotions on sales and consumption. Manage. Sci. 39 (1993) 517–535. [Google Scholar]
G. Gallego and G. van Ryzin, Optimal dynamic pricing of inventories with stochastic demand over finite horizons. Mange. Sci. 40 (1994) 999–1020. [Google Scholar]
W. Zhao and Y.S. Zheng, Optimal dynamic pricing for perishable assets with nonhomogeneous demand. Manage. Sci. 46 (2000) 375–388. [Google Scholar]
P. Cao, J. Li and H. Yan, Optimal dynamic pricing of inventories with stochastic demand and discounted criterion. Eur. J. Oper. Res. 217 (2012) 580–588. [Google Scholar]
P. Cao and D. Yao, Optimal pricing and inventory control strategy for a continuous-review system with product return. Oper. Res. Lett. 50 (2022) 295–302. [CrossRef] [MathSciNet] [Google Scholar]
R. Caldentey and M.B. Haugh, Supply contracts with financial hedging. Oper. Res. 57 (2009) 47–65. [Google Scholar]
G.P. Cachon and M.A. Lariviere, Supply chain coordination with revenue-sharing contracts: strengths and limitations. Manage. Sci. 51 (2005) 30–44. [CrossRef] [Google Scholar]
Z. Yao, S.C. Leung and K. Lai, Manufacturers revenue-sharing contract and retail competition. Eur. J. Oper. Res. 186 (2008) 637–651. [CrossRef] [Google Scholar]
W.G. Zhang, J. Fu, H. Li and W. Xu, Coordination of supply chain with a revenue-sharing contract under demand disruptions when retailers compete. Int. J. Prod. Econ. 138 (2012) 68–75. [Google Scholar]
V. Padmanabhan and I.P.L. Png, Manufacturer’s return policies and retail competition. Marketing Sci. 16 (1997) 81–94. [Google Scholar]
N. Modak, S. Panda and S. Sana, Three-echelon supply chain coordination considering duopolistic retailers with perfect quality products. Int. J. Prod. Econ. 182 (2016) 564–578. [Google Scholar]
H. Zheng, L. Tian and G. Li, A bane or a boon? Profit-margin-guarantee contract in a channel with downstream competition. Prod. Oper. Manage. 32 (2023) 2087–2100. [Google Scholar]
E. Adida and N. Ratisoontorn, Consignment contracts with retail competition. Eur. J. Oper. Res. 215 (2011) 136–148. [Google Scholar]
J. Raju and Z.J. Zhang, Channel coordination in the presence of a dominant retailer. Marketing Sci. 24 (2005) 254–262. [CrossRef] [Google Scholar]
S. Kolay and G. Shaffer, Contract design with a dominant retailer and a competitive fringe. Manage. Sci. 59 (2013) 2111–2116. [Google Scholar]
E. Cao and G. Chen, Information sharing motivated by production cost reduction in a supply chain with downstream competition. Nav. Res. Logistics 68 (2021) 898–907. [Google Scholar]
S. Yan, Z. Hua and Y. Bian, Does retailer benefit from implementing “online-to-store” channel in a competitive market? IEEE Trans. Eng. Manage. 67 (2020) 496–512. [Google Scholar]
H. Wu, G. Cai, J. Chen and C. Sheu, Online manufacturer referral to heterogeneous retailers. Prod. Oper. Manage. 24 (2015) 1768–1782. [Google Scholar]
C.H. Wu, C.W. Chen and C.C. Hsieh, Competitive pricing decisions in a two-echelon supply chain with horizontal and vertical competition. Int. J. Prod. Econ. 135 (2012) 265–274. [CrossRef] [Google Scholar]
G. Liang and C. Gu, The value of target sales rebate contracts in a supply chain with downstream competition. Int. J. Prod. Econ. 242 (2021) 108290. [Google Scholar]
R. Yoshihara and N. Matsubayashi, Channel coordination between manufacturers and competing retailers with fairness concerns. Eur. J. Oper. Res. 290 (2021) 546–555. [CrossRef] [Google Scholar]
B. Liu, X. Guan and Y. Wang, Supplier encroachment with multiple retailers. Prod. Oper. Manage. 30 (2021) 3523–3539. [CrossRef] [Google Scholar]
J. Li, J. Liang, V. Shi and J. Zhu, The benefit of manufacturer encroachment considering consumer’s environmental awareness and product competition. Ann. Oper. Res. 349 (2025) 1087–1107. [Google Scholar]
B.C. Giri, A. Chakraborty and T. Maiti, Quality and pricing decisions in a two-echelon supply chain under multi-manufacturer competition. Int. J. Adv. Manuf. Technol. 78 (2015) 1927–1941. [CrossRef] [Google Scholar]
Y.Y. Wang, Y. Tan, J.C. Wang and F. Lai, Uniform vs. retailer-specific pricing: How a supplier responds to the dominant retailers’ markup pricing strategy. J. Oper. Res. Soc. 74 (2023) 2633–2647. [Google Scholar]
B.C. Giri and T. Maiti, Service competition in a supply chain with two retailers under service level sensitive retail price and demand. Int. J. Manage. Sci. Eng. Manage. 9 (2014) 133–146. [Google Scholar]
B. Crettez, N. Hayek and G. Martín-Herrán, Existence of equilibrium in a dynamic supply chain game with vertical coordination, horizontal competition, and complementary goods. Eur. J. Oper. Res. 321 (2025) 302–313. [Google Scholar]
Y. Ishii, International cournot duopoly and R&D subsidies under demand uncertainty. J. Econ. 72 (2000) 203–222. [Google Scholar]
T.W. McGuire and R. Staelin, An industry equilibrium analysis of downstream vertical integration. Marketing Sci. 2 (1983) 161–191. [Google Scholar]
C.A. Ingene and M.E. Parry, Channel coordination when retailers compete. Marketing Sci. 14 (1995) 360–377. [CrossRef] [Google Scholar]

Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.

Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.

Initial download of the metrics may take a while.