Supply risk and inventory outsourcing

Charles Tapiero, A. Grando

Research output: Contribution to journalArticle

Abstract

This paper considers the 'inventory outsourcing problem when the supplier is a leader having full information of the outsourcing firm's demand distributions and parameters. This leads to a Stackleberg game which is solved under a number of cases. Both demand dependent and independent models are considered, the latter resulting from (statistical) risk aggregation of firms demands operating in correlated markets. A number of examples are also solved in order to highlight essential risk related and costs issues underlying inventory outsourcing. For practical purposes, a scenario-based linear programming problem is formulated to resolve the supplier's problem in any scenario set.

Original languageEnglish (US)
Pages (from-to)534-539
Number of pages6
JournalProduction Planning and Control
Volume17
Issue number5
DOIs
StatePublished - Jul 1 2006

Fingerprint

Outsourcing
Linear programming
Agglomeration
Supply risk
Costs
Suppliers
Scenarios

Keywords

  • Inventories
  • Risk
  • Supply chains

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering
  • Management Science and Operations Research

Cite this

Supply risk and inventory outsourcing. / Tapiero, Charles; Grando, A.

In: Production Planning and Control, Vol. 17, No. 5, 01.07.2006, p. 534-539.

Research output: Contribution to journalArticle

Tapiero, Charles ; Grando, A. / Supply risk and inventory outsourcing. In: Production Planning and Control. 2006 ; Vol. 17, No. 5. pp. 534-539.
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