Comment on “Salesforce Compensation with Inventory Considerations”
Management Science · 2024 · Volume 70 · Issue 10
Abstract
This note critically analyzes the conditions for equilibrium existence in a model involving incentive schemes and inventory management. It identifies a technical flaw where equilibrium is asserted to exist under certain parameter values when, in fact, it does not. However, by introducing a reasonable assumption that inventory can only be ordered in sufficiently large increments, the qualitative outcomes and key insights remain intact. This paper was accepted by Jeannette Song, operations management. Supplemental Material: The online appendix is available at https://doi.org/10.1287/mnsc.2023.03914 .
Keywords
salesforce compensation, inventory, salesperson
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