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Comment on “Salesforce Compensation with Inventory Considerations”: A Rejoinder

Tinglong Dai, Kinshuk Jerath

Management Science · 2024 · Volume 70 · Issue 12

DOI: 10.1287/mnsc.2024.05064

Abstract

In this rejoinder, we address the concern about equilibrium existence in our previous work published in 2013. By making the simple adjustment of discretizing inventory ordering amounts to prevent inventory orders in arbitrarily small increments, we show that the results from that paper hold, thus maintaining the robustness of the insights obtained. This paper was accepted by Jeannette Song, operations management.

Keywords

salesforce compensation, principal-agent theory, inventory-production: stochastic, batch ordering

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