Capacity allocation among suppliers in the presence of spot market

Description

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

1-1-2018

DOI

10.1109/IEEM.2018.8607555

Publisher

IEEE

Keywords

Resource management, Pricing, Supply chains, Contracts, Procurement

Conference

2018 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM), 16-19 December, 2018, Bangkok, Thailand

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