Impact of risk aversion and backup supplier on sourcing decisions of a firm

2015-11-17
Merzifonluoglu, Yasemin
Show full item record
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
167
views
0
downloads
This study focuses on a newsvendor problem with multiple suppliers, considering the risk-neutral and risk-averse objectives in a mean-risk optimisation model. The firm first decides order quantities from the primary (unreliable) suppliers and reserve capacity from the secondary (reliable) backup supplier. After the state of its primary suppliers and customer demand is revealed, the firm purchases from the available suppliers and uses the backup supplier subject to the reserved capacity. For the special case of normal distribution and risk-neutral objective, optimality properties were developed. A comprehensive numerical study examines the sensitivity of the sourcing strategies of firms to risk, shortage cost, demand uncertainty, salvage value, and capacity reserve options; various managerial insights are offered based on this.
Inventory control, Newsvendor problem, Conditional value-at-risk, Supplier selection
https://hdl.handle.net/11511/63884
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Economics and Administrative Sciences, Article

Suggestions

Impact of demand uncertainty on facility layouts: distributed versus dynamic facility layouts
Efeoğlu, Begün; Çelik, Melih; Süral, Haldun; Department of Industrial Engineering (2016)
Due to recent gradual decrease in product life cycles and lead times and increase in diversity and variability of demand, traditional methods based on product or process layouts are losing their effectiveness. This thesis investigates the effect of demand uncertainty on the choice of layout type in the stochastic integrated facility layout problems (IFLP), which aims to determine the material and product flows among (copies of) work centers and machines, in conjunction with their locations within the facili...
EFFECTS OF MULTIPLE CRITERIA ON PORTFOLIO OPTIMIZATION
Ceren, Tuncer Sakar; Köksalan, Mustafa Murat (World Scientific Pub Co Pte Lt, 2014-01-01)
We study the effects of considering different criteria simultaneously on portfolio optimization. Using a single-period optimization setting, we use various combinations of expected return, variance, liquidity and Conditional Value at Risk criteria. With stocks from Borsa Istanbul, we make computational studies to show the effects of these criteria on objective and decision spaces. We also consider cardinality and weight constraints and study their effects on the results. In general, we observe that consider...
The Impact of Modeling on Robust Inventory Management Under Demand Uncertainty
Solyali, Oguz; Cordeau, Jean-Francois; Laporte, Gilbert (2016-04-01)
This study considers a basic inventory management problem with nonzero fixed order costs under interval demand uncertainty. The existing robust formulations obtained by applying well-known robust optimization methodologies become computationally intractable for large problem instances due to the presence of binary variables. This study resolves this intractability issue by proposing a new robust formulation that is shown to be solvable in polynomial time when the initial inventory is zero or negative. Becau...
Impact of self orientations on well-being during adulthood : the mediating roles of meaning in life, attitudes towards death and religious outlook
Yeniçeri, Zuhal; İmamoğlu, Emine Olcay; Department of Psychology (2013)
The first aim of the present study was to explore the impact of relational and individuational self orientations proposed by Balanced Integration Differentiation (BID) Model (İmamoğlu, 1998; 2003) on adults’ subjective (SWB) and psychological well-being (PWB). Secondly, it was aimed to test a structural model which shows the possible associations between self orientations, meaning in life (presence of and search for meaning in life) and well-being. Lastly, attitudes towards death (death transcendence and de...
Effect of using extreme years in hydrologic model calibration performance
Göktaş, Recep Kaya; Tezel, Ulaş; Kargı, Pınar Gökçe; Ayvaz, Mustafa Tamer; Tezyapar, İpek; Mesta, Buket; Kentel Erdoğan, Elçin (2017-12-15)
Hydrological models are useful in predicting and developing management strategies for controlling the system behaviour. Specifically they can be used for evaluating streamflow at ungaged catchments, effect of climate change, best management practices on water resources, or identification of pollution sources in a watershed. This study is a part of a TUBITAK project named "Development of a geographical information system based decision-making tool for water quality management of Ergene Watershed using pollut...
Citation Formats
Y. Merzifonluoglu, “Impact of risk aversion and backup supplier on sourcing decisions of a firm,” INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH, pp. 6937–6961, 2015, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/63884.
METU IIS - Integrated Information Service open@metu.edu.tr