Abstract

http://ssrn.com/abstract=1007413
 
 

References (34)



 
 

Citations (1)



 


 



The Impact of E-Auctions in Adjusting Procurement Strategies for Specialty Coffee


M. Laura Donnet


Universidad Austral - Facultad de Ciencias Empresariales

Thomas D. Jeitschko


Michigan State University - Department of Economics

Dave D. Weatherspoon


Michigan State University

November 24, 2009


Abstract:     
Supply relationships and e-auctions are complementary procurement forms that specialty coffee roasters can utilize when designing a procurement strategy. We model the roasters’ optimal choices of procurement strategies using an extended newsvendor model. By comparing the optimal strategies in a benchmark case solely based on relationships to a case in which auctions can be utilized, we derive the impact of e-auctions on the procurement quantity and profit under conditions of demand uncertainty. The two stage model predicts that the adjustment of procurement using e-auctions is most beneficial under market circumstances of high demand variability and small firm size. We use industry data to illustrate the market conditions for specialty coffee and discuss the potential impact of e-auctions on procurement strategies for specialty coffee based on our model. The theoretical propositions in conjunction with current industry data suggest that e-auctions have great potential to become an integral part of and shape roasters’ procurement approaches in the specialty coffee market.

Number of Pages in PDF File: 33

Keywords: Procurement, E-Auctions, Differentiated Supply Chains, Specialty Coffees, Newsvendor Model

JEL Classification: D2, D44, L14, L22, Q1, Q13

working papers series





Download This Paper

Date posted: August 16, 2007 ; Last revised: August 3, 2014

Suggested Citation

Donnet, M. Laura and Jeitschko, Thomas D. and Weatherspoon, Dave D., The Impact of E-Auctions in Adjusting Procurement Strategies for Specialty Coffee (November 24, 2009). Available at SSRN: http://ssrn.com/abstract=1007413 or http://dx.doi.org/10.2139/ssrn.1007413

Contact Information

M. Laura Donnet (Contact Author)
Universidad Austral - Facultad de Ciencias Empresariales ( email )
S2000FZF Rosario
Argentina
Thomas D. Jeitschko
Michigan State University - Department of Economics ( email )
110 Marshall-Adams Hall
East Lansing, MI 48824
United States
517-355-8302 (Phone)
517-432-1068 (Fax)
HOME PAGE: http://www.msu.edu/~jeitschk/
Dave D. Weatherspoon
Michigan State University ( email )
East Lansing, MI 48824
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,613
Downloads: 343
Download Rank: 50,646
References:  34
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.453 seconds