Author(s): LI Jian-bin, WANG Qi-fei, HU Wei
Pages: 8-14
Year: 2016 Issue:  1
Journal: Operations Research and Management Science
Keyword:  supply chain performance; channel stuffing; information asymmetry; executive stock option;
Abstract: In a two-stage supply chain composed of a manufacturer and a retailer , the manufacturer manager may maximize his own utility through channel stuffing strategy .This paper investigates the effect of channel stuffing decisions on the supply chain performance under information asymmetry and finds that as the investors correcting finical reports increase , the inventory level as well as the manufacturer manager ’ s utility decrease .When the manager pays more attention to market value , the manufacturer ’ s profit decreases which indicates channel stuff-ing has a negative effect on the manufacturer ’ s real value .Meanwhile , the profit of the total supply chain is affected by the manager ’ s channel stuffing decision as well as other external factors such as retail price .Moreo-ver, strengthening external supervision and designing a reasonable incentive scheme help to reduce managers ’ channel stuffing behaviors .