abstract: in most industries the cost of raw materials and component parts constitutes almost 60% percent of cost of a product (in some industries up to 80%). in this situation, proper sourcing can play a key role in an organization's efficiency and effectiveness, because it has a direct effect on cost reduction, profitability and flexibility of a company. in this paper, determining the op...

In today’s global services outsourcing arena, increasing numbers of companies adopt “multisourcing,” that is, they select and combine information technology (IT) and business services from multiple providers. The literature on IT outsourcing and supply chain management has identified critical tradeoffs involved in increasing the number of suppliers and has strongly recommended focusing on a han...

Inventory models in which the demand rate dependents on the stock- dependent are based on the common real- life observation that greater product availability tends to stimulate more sales. In this study we develop an inventory model to determine an optimal ordering policy for quantity dependent demand rate and time dependent holding cost items with delay in payments permitted by the supplier un...

Supplier sourcing strategies are a crucial factor driving supply chain success. In this paper, we investigate the implications of uncertain supplier reliability on a firm’s sourcing decisions in an environment with stochastic demand. In particular, we characterize specific conditions under which a firm should choose a single versus multiple supplier sourcing strategy. In an environment with bot...

The problem of product assortment and inventory planning under customer-driven demand substitution is analyzed and a mathematical model for this problem is provided in this paper. Realistic issues in a retail context such as supplier selection, shelf space constraints, and poor quality procurement are also taken into account. The performance of three modified models, one that neglects customers...

Sourcing from emerging economies may yield direct cost savings, but companies often face greater risk of supplier responsibility problems due to many factors, with lax regulatory enforcement in these regions being one of them. Intuitively, to mitigate such risks, companies can design incentive schemes in sourcing contracts and invest in screening mechanisms for supplier sourcing. However, the r...

This paper studies split-award procurement auctions where a buyer can either divide full production among multiple suppliers or award the entire production to a single supplier. The literature shows that single sourcing usually dominates multiple sourcing. This paper challenges the “winner-takes-all” argument. In a framework of generalized second-price auctions with pre-auction investment, we s...

recently, much attention has been given to stochastic demand due to uncertainty in the real -world. in the literature, decision-making models and suppliers' selection do not often consider inventory management as part of shopping problems. on the other hand, the environmental sustainability of a supply chain depends on the shopping strategy of the supply chain members. the supplier selection pl...

This paper studies three different strategies of sourcing. The whole process of this research including the problem definition is exactly based on a real case condition. This paper model sourcing process of required parts and material for a product which is manufactured under the license of Peugeot Company, the mother manufacturer in France. Based on the agreement between Peugeot and the manufa...

A global sourcing network consists of a set of suppliers located globally to satisfy the demands of an international factory network. The design of a global sourcing network consists of two interrelated decisions: supplier selection and order allocation. The supplier selection is a strategic decision that involves an one time capital investment in developing the selected suppliers. The order al...