Supply Chain Operations in the Presence of a Spot Market: A Review with Discussion

Haksöz, Çağrı; Seshadri, S.

Abstract

We survey the recent literature on the use of spot market operations to manage procurement in supply chains. We present results in two categories: work that deals with optimal procurement strategies and work related to the valuation of procurement contracts. As an example of the latter, we provide new results on valuation of a supply contract with abandonment option. Based on our review, we also discuss the scope for doing further work.

Citation

Haksöz, Ç., & Seshadri, S. (2007). Supply Chain Operations in the Presence of a Spot Market: A Review with Discussion. https://doi.org/10.1057/palgrave.jors.2602401

• Journal Article Type: Article
• Publication Date: 2007
• Deposit Date: Sep 25, 2019
• Journal: Journal of Operational Research Society
• Volume: 58
• Issue: 11
• Pages: 1412-1429
• DOI: https://doi.org/10.1057/palgrave.jors.2602401
• Keywords: Supply chain contracts, Stochastic dynamic programming, Risk, Real options, Practice of OR
• Public URL: https://durham-repository.worktribe.com/output/1320345
• Related Public URLs: https://www.researchgate.net/publication/233570230_Supply_chain_operations_in_the_presence_of_spot_market_A_review_with_discussion