INVENTORY OUTSOURCING AND RISK MANAGEMENT

Risk Averse Inventory Management∗

Traditional inventory models focus on risk neutral decision makers, i.e., characterizing replenishment strategies that maximize expected total profit, or equivalently, minimize expected total cost over a planning horizon. In this paper, we propose a general framework for incorporating risk aversion in multi-period inventory models as well as multi-period models that coordinate inventory and pri...

Risk Aversion in Inventory Management

Traditional inventory models focus on risk-neutral decision makers, i.e., characterizing replenishment strategies that maximize expected total profit, or equivalently, minimize expected total cost over a planning horizon. In this paper, we propose a framework for incorporating risk aversion in multi-period inventory models as well as multi-period models that coordinate inventory and pricing str...

IT Outsourcing Risk Management at British Petroleum

This paper reports the results of a study of three successive IT outsourcing contracts at British Petroleum (BP). We offer an operational definition of IT outsourcing risk and use it to assess the risk exposure associated with each contract. We then examine how the management at BP dealt with outsourcing risk. Our results show that careful and deliberate risk management can substantially attenu...

Risk Management in Next Generation Outsourcing Contents

Managing Warranty Services: Pricing, Inventory and Outsourcing

Wei Huang: Managing Warranty Services: Pricing, Inventory and Outsourcing (Under the direction of Jayashankar Swaminathan, Vidyadhar Kulkarni) Managing warranty services plays a very important role in today’s business environment. This thesis concentrates on three specific areas related to warranty: joint control of new and warranty parts inventory, outsourcing of repair services, coordinated p...