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THE SINGLE PERIOD PROCUREMENT PROBLEM WHERE DEDICATED SUPPLIER CAPACITY CAN BE RESERVED

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Title THE SINGLE PERIOD PROCUREMENT PROBLEM WHERE DEDICATED SUPPLIER CAPACITY CAN BE RESERVED
 
Creator JAIN, K
SILVER, EA
 
Description In this article we consider the single period procurement strategy for an item with uncertainty in its demand and uncertainty in the capacity of the supplier. Dedicated capacity can be ensured by paying a premium charge to the supplier. The other decision variable is the replenishment quantity to request. It turns out to be very easy to select the best value of this latter quantity. On the other hand, we are only able to characterize the general behavior of the expected profit as a function of the level of dedicated capacity. In general, there can be multiple local maxima as a function of the dedicated capacity. However, for the special, but important, case of normally distributed demand, normally distributed capacity and a linear cost for reserving capacity, an algorithm is developed for finding the best level of dedicated capacity. Some preliminary insights regarding the extension to multiple periods are presented. (C) 1995 , Inc.
 
Publisher JOHN WILEY & SONS INC
 
Date 2011-08-16T16:13:33Z
2011-12-26T12:55:01Z
2011-12-27T05:43:33Z
2011-08-16T16:13:33Z
2011-12-26T12:55:01Z
2011-12-27T05:43:33Z
1995
 
Type Article
 
Identifier NAVAL RESEARCH LOGISTICS, 42(6), 915-934
0894-069X
http://dx.doi.org/10.1002/1520-6750(199509)42:6<915::AID-NAV3220420605>3.0.CO;2-M
http://dspace.library.iitb.ac.in/xmlui/handle/10054/9550
http://hdl.handle.net/10054/9550
 
Language en