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Two-stage supply chain design with safety stock placement decisions

Author

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  • SCHUSTER Matias

    (Université catholique de Louvain, CORE, Belgium)

  • MINNER Stefan

    (Technische Universität München)

  • TANCREZ Jean-Sébastien

    (Université catholique de Louvain, CORE, Belgium)

Abstract

We introduce within-group external effects in the two-sided singlehoming model of Armstrong (2006). First, we propose a general characterization of the platform access fees at the symmetric equilibrium of the game. Second, we combine this general formulation with a specific modeling of the relationship between buyers and sellers on B2C platforms, so as to analyze how changes in the underlying characteristics of the product market affect the equilibrium of the game. We show that sellers may be better off, and buyers worse off, in markets with more sellers. We also show that sellers and buyers prefer full product differentiation while platforms prefer no differentiation.

Suggested Citation

  • SCHUSTER Matias & MINNER Stefan & TANCREZ Jean-Sébastien, 2017. "Two-stage supply chain design with safety stock placement decisions," LIDAM Discussion Papers CORE 2017001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2017001
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    Cited by:

    1. Straubert, Christian, 2024. "A continuous approximation location-inventory model with exact inventory costs and nonlinear delivery lead time penalties," International Journal of Production Economics, Elsevier, vol. 268(C).
    2. Hacardiaux, Thomas & Defryn, Christof & Tancrez, Jean-Sébastien & Verdonck, Lotte, 2020. "Balancing partner preferences for logistics costs and carbon footprint in a horizontal cooperation," Research Memorandum 002, Maastricht University, Graduate School of Business and Economics (GSBE).
    3. Yazdani, Majid & Aouam, Tarik, 2023. "Shipment planning and safety stock placement in maritime supply chains with stochastic demand and transportation times," International Journal of Production Economics, Elsevier, vol. 263(C).
    4. Ozlem Yilmaz, 2025. "A Literature Review on Inventory Pooling with Applications," Sustainability, MDPI, vol. 17(2), pages 1-23, January.
    5. Puttemans, Inez & Caris, An & Braekers, Kris, 2025. "The integration of location and inventory decisions in supply chain networks: A literature review and future prospects," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 195(C).
    6. Thomas Hacardiaux & Jean-Sébastien Tancrez, 2022. "Assessing the benefits of horizontal cooperation for the various stages of the supply chain," Operational Research, Springer, vol. 22(4), pages 3901-3924, September.
    7. Darmawan, Agus & Wong, Hartanto & Thorstenson, Anders, 2021. "Supply chain network design with coordinated inventory control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    8. Barros, Júlio & Cortez, Paulo & Carvalho, M. Sameiro, 2021. "A systematic literature review about dimensioning safety stock under uncertainties and risks in the procurement process," Operations Research Perspectives, Elsevier, vol. 8(C).
    9. Thomas Hacardiaux & Christof Defryn & Jean-Sébastien Tancrez & Lotte Verdonck, 2022. "Balancing partner preferences for logistics costs and carbon footprint in a horizontal cooperation," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(1), pages 121-153, March.
    10. Mario Di Nardo & Mariano Clericuzio & Teresa Murino & Chiara Sepe, 2020. "An Economic Order Quantity Stochastic Dynamic Optimization Model in a Logistic 4.0 Environment," Sustainability, MDPI, vol. 12(10), pages 1-25, May.
    11. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    12. Wang, Yuan & Shu, Jia & Su, Jingjing & Zhen, Lu, 2025. "Inventory placement with carbon cap-and-trade in guaranteed service supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 193(C).
    13. Darmawan, Agus & Wong, Hartanto Wijaya & Fransoo, Jan, 2025. "Supply chain network design with the presence of the bullwhip effect," International Journal of Production Economics, Elsevier, vol. 286(C).

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