Inventory outsourcing and risk management

Charles Tapiero, Alberto Grando

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This paper considers the "inventory outsourcing problem" as a VaR (Value at Risk) problem providing a mechanism for managing outsourcing firms when the supplier is a leader having full information of the outsourcing firm's demand distributions and cost parameters. This leads to a Stackleberg game which is solved under a number of assumptions. Both demand dependent and independent models are considered, the latter resulting from (statistical) risk aggregation. A number of examples are solved as well to highlight essential issues underlying the practice of inventory outsourcing-price and supply priorities. These solutions can be be expressed as nonlinear optimization problems which can be solved by standard numerical routines.

Original languageEnglish (US)
Title of host publicationProceedings of the 16th IFAC World Congress, IFAC 2005
Pages13-17
Number of pages5
Volume16
StatePublished - 2005
Event16th Triennial World Congress of International Federation of Automatic Control, IFAC 2005 - Prague, Czech Republic
Duration: Jul 3 2005Jul 8 2005

Other

Other16th Triennial World Congress of International Federation of Automatic Control, IFAC 2005
CountryCzech Republic
CityPrague
Period7/3/057/8/05

Fingerprint

Outsourcing
Risk management
Agglomeration
Costs

Keywords

  • Inventory control
  • Production systems
  • Uncertainty

ASJC Scopus subject areas

  • Control and Systems Engineering

Cite this

Tapiero, C., & Grando, A. (2005). Inventory outsourcing and risk management. In Proceedings of the 16th IFAC World Congress, IFAC 2005 (Vol. 16, pp. 13-17)

Inventory outsourcing and risk management. / Tapiero, Charles; Grando, Alberto.

Proceedings of the 16th IFAC World Congress, IFAC 2005. Vol. 16 2005. p. 13-17.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Tapiero, C & Grando, A 2005, Inventory outsourcing and risk management. in Proceedings of the 16th IFAC World Congress, IFAC 2005. vol. 16, pp. 13-17, 16th Triennial World Congress of International Federation of Automatic Control, IFAC 2005, Prague, Czech Republic, 7/3/05.
Tapiero C, Grando A. Inventory outsourcing and risk management. In Proceedings of the 16th IFAC World Congress, IFAC 2005. Vol. 16. 2005. p. 13-17
Tapiero, Charles ; Grando, Alberto. / Inventory outsourcing and risk management. Proceedings of the 16th IFAC World Congress, IFAC 2005. Vol. 16 2005. pp. 13-17
@inproceedings{fcdacaae86cd4a99a611564c0f1594bb,
title = "Inventory outsourcing and risk management",
abstract = "This paper considers the {"}inventory outsourcing problem{"} as a VaR (Value at Risk) problem providing a mechanism for managing outsourcing firms when the supplier is a leader having full information of the outsourcing firm's demand distributions and cost parameters. This leads to a Stackleberg game which is solved under a number of assumptions. Both demand dependent and independent models are considered, the latter resulting from (statistical) risk aggregation. A number of examples are solved as well to highlight essential issues underlying the practice of inventory outsourcing-price and supply priorities. These solutions can be be expressed as nonlinear optimization problems which can be solved by standard numerical routines.",
keywords = "Inventory control, Production systems, Uncertainty",
author = "Charles Tapiero and Alberto Grando",
year = "2005",
language = "English (US)",
isbn = "008045108X",
volume = "16",
pages = "13--17",
booktitle = "Proceedings of the 16th IFAC World Congress, IFAC 2005",

}

TY - GEN

T1 - Inventory outsourcing and risk management

AU - Tapiero, Charles

AU - Grando, Alberto

PY - 2005

Y1 - 2005

N2 - This paper considers the "inventory outsourcing problem" as a VaR (Value at Risk) problem providing a mechanism for managing outsourcing firms when the supplier is a leader having full information of the outsourcing firm's demand distributions and cost parameters. This leads to a Stackleberg game which is solved under a number of assumptions. Both demand dependent and independent models are considered, the latter resulting from (statistical) risk aggregation. A number of examples are solved as well to highlight essential issues underlying the practice of inventory outsourcing-price and supply priorities. These solutions can be be expressed as nonlinear optimization problems which can be solved by standard numerical routines.

AB - This paper considers the "inventory outsourcing problem" as a VaR (Value at Risk) problem providing a mechanism for managing outsourcing firms when the supplier is a leader having full information of the outsourcing firm's demand distributions and cost parameters. This leads to a Stackleberg game which is solved under a number of assumptions. Both demand dependent and independent models are considered, the latter resulting from (statistical) risk aggregation. A number of examples are solved as well to highlight essential issues underlying the practice of inventory outsourcing-price and supply priorities. These solutions can be be expressed as nonlinear optimization problems which can be solved by standard numerical routines.

KW - Inventory control

KW - Production systems

KW - Uncertainty

UR - http://www.scopus.com/inward/record.url?scp=79960722280&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=79960722280&partnerID=8YFLogxK

M3 - Conference contribution

AN - SCOPUS:79960722280

SN - 008045108X

SN - 9780080451084

VL - 16

SP - 13

EP - 17

BT - Proceedings of the 16th IFAC World Congress, IFAC 2005

ER -