European Business Schools Librarian's Group
Home About Series Subject/JEL codes Advanced Search
HEC Paris. Research Department Les Cahiers de Recherche - HEC Paris

No 979:
A Note on 'Sourcing Decisions with Stochastic Supplier Reliability and Stochastic Demand'

Christian Van Delft () and Jean-Philippe Vial ()

Abstract: Burke, Carillo and Vakharia [2009] consider a class of single product sourcing problems with a stochastic demand and multiple uncertain suppliers. Assuming that the demand is independent of the supplier reliabilities and uniformly distributed, they propose to write the expected profit as a quadratic function and derive a closed form expression for the optimal orders. We show that this formula is true only under special circumstances, which are not satisfied in many practical situations of interest. We give an exact formulation and solution procedure, holding under general assumptions. We illustrate our point by a complementary analysis of the numerical examples given in the quoted paper

Keywords: product sourcing; stochastic demand; suppliers; demand; sourcing; (follow links to similar papers)

JEL-Codes: G00; (follow links to similar papers)

15 pages, April 1, 2013

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

papers.cfm?abstract_id=2259674    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Sandra Dupouy ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design Joakim Ekebom

Handle: RePEc:ebg:heccah:0979 This page was generated on 2014-12-14 17:56:26