European Business Schools Librarian's Group

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

JEL-codes: G00

15 pages, April 1, 2013

Full text files

papers.cfm?abstract_id=2259674 PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Antoine Haldemann ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-02-22 16:53:01.