We show that the manufacturer’s problem in two-stage push supply chains with price-only contracts can be reformulated as a newsvendor problem with a modified demand distribution. This reformulation provides additional managerial insights, facilitates the solution of a problem with competing retailers under more general assumptions and reduces a number of three-stage problems to equivalent two-stage problems.
['George J. Kyparisis', 'Christos Koulamas']
New structural properties of supply chains with price-only contracts