Production and Operations Management 2000

SUPPLY CONTRACTS WITH PERIODIC, STATIONARY COMMITMENT

Timothy L. Urban^1,2,3,4,5

¹ National Society of Professional Engineers · ² Johnson & Johnson (United States) · ³ General Dynamics (United States) · ⁴ Federal Reserve Bank of Dallas · ⁵ University of Tulsa

Abstract

The purpose of this paper is to model and analyze supply contracts with periodical commitment, in which the order quantities are fixed and stationary, with limited flexibility to change the order quantity at a cost to the buyer. A solution methodology is provided for the general, stochastic problem, and consideration is given to specific demand distributions. The deterministic model is also investigated, formulating the problem as a mixed‐integer linear program and as a network flow problem. Computational analyses are conducted, and the extension of the basic problem to the multiple‐product, multiple‐constraint problem is discussed.

DOI

10.1111/j.1937-5956.2000.tb00466.x

Sources

openalex

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓