23. Combined Sourcing and Inventory Management Using Capacity Reservation and Spot Market
—Rainer Kleber, Faculty of Economics and Management, Otto-von-Guericke University Magdeburg, Germany
—Karl Inderfurth, Faculty of Economics and Management, Otto-von-Guericke University Magdeburg, Germany
—Peter Kelle, Department of Information Systems and Decision Sciences, Louisiana State University, Baton Rouge, LA, USA
Abstract
Leading companies in several industries purchase materials with the combined use of capacity reservation contracts and spot market. We analyze the optimal and a simplified policy for making long-term capacity reservations and periodic ordering/inventory decisions using the preceding two sources under stochastic demand and random ...
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