| Article ID: | iaor2006735 |
| Country: | Netherlands |
| Volume: | 33 |
| Issue: | 6 |
| Start Page Number: | 572 |
| End Page Number: | 580 |
| Publication Date: | Nov 2005 |
| Journal: | Operations Research Letters |
| Authors: | Iyer Ananth V., Deshpande Vinayak, Wu Zhengping |
| Keywords: | demand, supply |
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.