IDEAS home Printed from https://ideas.repec.org/p/mag/wpaper/09002.html
   My bibliography  Save this paper

The structure of the optimal combined sourcing policy using capacity reservation and spot market with price uncertainty

Author

Listed:
  • 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.

Suggested Citation

  • Karl Inderfurth & Peter Kelle, 2009. "The structure of the optimal combined sourcing policy using capacity reservation and spot market with price uncertainty," FEMM Working Papers 09002, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
  • Handle: RePEc:mag:wpaper:09002
    as

    Download full text from publisher

    File URL: http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2009_Dateien/2009_02.pdf
    File Function: First version, 2009
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Capacity reservation; spot market; purchasing policy; supply contracts; stochastic inventory control;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mag:wpaper:09002. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/fwmagde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Guido Henkel (email available below). General contact details of provider: https://edirc.repec.org/data/fwmagde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.