Capacity reservation under spot market price uncertainty

International Journal of Production Economics

Volumn 133, Issue 1, 2011, Pages 272-279

  Inderfurth, Karl ^a   Kelle, Peter ^b  

^a OTTO VON GUERICKE UNIVERSITY   (Germany)

^b LOUISIANA STATE UNIVERSITY   (United States)

Author keywords

Capacity reservation; Purchasing policy; Spot market; Stochastic inventory control; Supply chain contracts

Indexed keywords

BASE STOCK POLICY; CAPACITY RESERVATION; COST-EFFECTIVE MANAGEMENT; DEMAND UNCERTAINTY; JOINT EFFECT; OPERATIONAL RISKS; OPTIMAL CAPACITY; PURCHASING PRACTICES; RESERVED CAPACITY; SIMULATION RESULT; SINGLE SOURCING; SPOT MARKET; SPOT PRICE; STOCHASTIC INVENTORY; SUPPLY CHAIN CONTRACTS; UNCERTAINTY PARAMETERS;

COSTS; SALES; STRUCTURAL OPTIMIZATION; SUPPLY CHAINS;

COMMERCE;

EID: 79958205918     PISSN: 09255273     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijpe.2010.04.022     Document Type: Conference Paper

References (25)

1. E. Andren Steel Marketplaces are Strengthening their Mettle 2000 Gartner Group, Inc. January 4, 2000
2. C. Ansberry Deadline scramble - a new hazard for recovery Wall Street Journal 2002 June 25
3. S. Bonser, and S.D. Wu Procurement planning to maintain both short-term adaptiveness and long-term perspective Management Science 47 2001 769 786
4. A. Burnetas, and P. Ritchken Option pricing with downward sloping demand curves: the case of supply chain options Management Science 51 2005 566 580 (Pubitemid 41009653)
5. L. de Boer, E. Labro, and P. Morlacchi A review of methods supporting supplier selection European Journal of Purchasing and Supply Management 7 2001 75 89 (Pubitemid 33632140)
6. Deng, S.; Yano, C.A.; 2002. On the role of a second purchase opportunity in a two-echelon supply chain. Working paper, University of California, Berkeley.
7. M. Erkoc, and S.D. Wu Managing high-tech capacity expansion via reservation contracts Production and Operations Management 14 2005 232 251 (Pubitemid 41452506)
8. T. Fabian, J.F. Fisher, H.W. Sasieni, and A. Yardieni Purchasing raw material on a fluctuating market Operations Research 7 1959 107 122
9. M. Henig, Y. Gerchak, R. Ernst, and D.F. Pyke An inventory model embedded in designing a supply contract Management Science 43 1997 184 189 (Pubitemid 127575334)
10. Inderfurth, K.; Kelle, P.; 2009. The structure of the optimal combined sourcing policy using capacity reservation and spot market. FEMM Working Papers #09002, Otto-von-Guericke-University Magdeburg 〈 http://www.ww.uni- magdeburg.de/fwwdeka/femm/ 〉.
11. Jin, M.; Wu, S.D.; 2001. Modeling capacity reservation in high-tech manufacturing. Working Paper, Lehigh University, Pennsylvania.
12. B. Kamrad, and A. Siddique Supply contracts, profit sharing, switching, and reaction options Management Science 50 2004 64 82
13. B.G. Kingsman Commodity purchasing Operational Research Quarterly 20 1969 59 79
14. P.R. Kleindorfer, and D.J. Wu Integrating long and short term contracting via business-to-business exchanges for capital intensive industries Management Science 49 2003 1597 1615
15. W.T. Morris Some analysis of purchasing policy Management Science 5 1959 443 452
16. P. Ritchken, and C.S. Tapiero Contingent claim contracts and inventory control Operations Research 34 1986 864 870
17. R.W. Seifert, U.W. Thonemann, and W.H. Hausman Optimal procurement strategies for online spot markets European Journal of Operational Research 152 2004 781 799
18. D.A. Serel, M. Dada, and H. Moskowitz Sourcing decisions with capacity reservation contracts European Journal of Operational Research 131 2001 635 648 (Pubitemid 32272384)
19. D.A. Serel Capacity reservation under supply uncertainty Computers and Operations Research 34 2007 1192 1220 (Pubitemid 44402895)
20. D.A. Serel Inventory and pricing decisions in a single-period problem involving risky supply International Journal of Production Economics 116 2008 115 128
21. S.P. Sethi, H. Yan, and H. Zhang Quantity flexibility contracts: optimal decisions with information updates Decision Sciences 35 2004 691 712 (Pubitemid 40816698)
22. S. Spinler, and A. Huchzermeier The valuation of options on capacity with cost and demand uncertainty European Journal of Operational Research 171 2006 915 934 (Pubitemid 43132954)
23. C.S. Tapiero Orders and inventory commodities with price and demand uncertainty in complete markets International Journal of Production Economics 115 2008 12 18
24. C.-K. Woo, I. Horowitz, A. Olson, B. Horii, and C. Baskette Efficient frontiers for electricity procurement by an LDC with multiple purchase options Omega 34 2006 70 80 (Pubitemid 41226735)
25. Wu, D.J.; Kleindorfer, P.; Sun, Y.; Zhang, J.E.; 2001. The price of real option on capacity. Working Paper, Department of Operations and Information Management, The Wharton School, University of Pennsylvania, March.