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Relating the multiple supply problem to quantity flexibility contracts |
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| Authors: | Özgür Yazlali |
| Institution: | Department of Management Science and Engineering, Stanford University, Stanford, CA 94305, USA |
| Abstract: | We consider two classes of problems in the supply chain management literature: the multiple supply problem and quantity flexibility contracts. We identify the similarities between these two problems and show that for both the total operating cost of the manufacturer is convex with respect to its arguments under mild conditions. |
| Keywords: | Demand uncertainty Dual supply problem with general leadtimes Maximum capacity limit Minimum order commitment Dynamic programming |
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