Procurement Strategies for Multiple Inputs
This paper analyzes the procurement decision of a firm that produces a single commodity output using two commodity inputs. The firm can source the two inputs in advance of the selling season through long-term contracts or from the spot markets. We investigate the impact of using different contract types (fixed-price versus index-priced) on the profitability of the firm. The main motivation comes from a soda ash producer located in India that procures multiple commodity inputs for production.
Agribusiness | Operations and Supply Chain Management
INFORMS Annual Meeting, Phoenix, 14-17 October 2012
City or Country
Phoenix, AZ, USA
BOYABATLI, Onur and CRAMA, Pascale.
Procurement Strategies for Multiple Inputs. (2012). INFORMS Annual Meeting, Phoenix, 14-17 October 2012. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/3262