Capacity allocation among suppliers in the presence of spot market

Document Type

Article

Publication Title

IEEE international Conference On industrial Engineering and Engineering Management

Abstract

We consider a supply chain with two suppliers and one buyer. The buyer faces uncertain demand decides to reserve some capacity through the two suppliers. The buyer also sources the remaining capacity from the spot market if demand exceeds the reserved capacity. The suppliers have finite capacity and both have access to a third-party client market. We analytically analyze this problem and characterize its solution.

Publication Date

13-1-2019

Publisher

IEEE Computer Society

Volume

Vol.2019-December

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