A Single Supplier Procurement Model With Random Yield
author
Abstract:
In this paper, we develop a procedure for selecting a supplier. Suppliers are characterized by their lead time, price and quality (random yield). Each purchased item is acceptable with a given probability and independent of the others. We assume the demands are deterministic with no set-up cost and backordering is allowed. For each supplier, an optimal ordering policy is developed. We prove the optimal policy is myopic if the value of items remains constant.
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Journal title
volume 6 issue 2
pages 95- 108
publication date 1993-08-01
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