Karl Inderfurth () (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg) Peter Kelle () (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
Abstract
This contribution focuses on the cost-effective management of the combined use of two procurement options: the short-term option is given by a spot-market with random price, whereas the long-term alternative is characterized by a multi period capacity reservation contract with fixed purchase price, reservation level and capacity reservation cost. Considering a multiperiod problem with stochastic demand, the structure of the optimal combined purchasing policy is derived using stochastic dynamic programming.
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Publisher Info
Paper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number
09002.