Abstract
The globalization and outsourcing trend makes supply chain vulnerable in the industry. As one important activity of supply chain, procurement planning should be formulated by considering operational risk and disruptive risk in the dynamic business environment. Therefore, procurement decision making under uncertainty has attracted considerable attention by both academia and industry. One of the challenges faced by enterprise is when reactive supply or spot market should be used to reduce yield risk. Most existing models only consider expected profits but overlook the variance of profits. Based on this research gap, a research problem of how to make optimal procurement decisions under yield uncertainty in the presence of spot market is studied. Mathematical model based on mean-variance framework is developed to obtain analytical solutions. The effects of related risk factors on optimal decisions are examined.
| Original language | English |
|---|---|
| Title of host publication | 2011 IEEE International Conference on Quality and Reliability, ICQR 2011 |
| Pages | 355-360 |
| Number of pages | 6 |
| DOIs | |
| Publication status | Published - 24 Oct 2011 |
| Externally published | Yes |
| Event | 2011 IEEE International Conference on Quality and Reliability, ICQR 2011 - Bangkok, Thailand Duration: 14 Sept 2011 → 17 Sept 2011 |
Conference
| Conference | 2011 IEEE International Conference on Quality and Reliability, ICQR 2011 |
|---|---|
| Country/Territory | Thailand |
| City | Bangkok |
| Period | 14/09/11 → 17/09/11 |
Keywords
- Procurement planning
- risk management
- spot market
- uncertain price
- uncertain yield
ASJC Scopus subject areas
- Safety, Risk, Reliability and Quality