We model a monopolist supplier whose supply to multiple buyers is disrupted. The supplier can take costly, speed-dependent actions, to restore supply. Buyers experience private backorder costs that are unknown to the supplier. We analyze the supplier's optimal contract structure and explore the impact of an alternate supplier.
- Capacity restoration
- Contingency management
- Information asymmetry
ASJC Scopus subject areas
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics