Supply Chain Operations in the Presence of a Spot Market: A Review with Discussion

Journal of Operational Research Society, Forthcoming

Posted: 7 Apr 2005

See all articles by Cagri Haksoz

Cagri Haksoz

Sabanci University - School of Management

Sridhar Seshadri

University of Illinois at Urbana Champaign

Abstract

We survey the recent literature on the use of spot market operations to manage procurement in supply chains. We present results in two categories: work that deals with optimal procurement strategies and work related to the valuation of procurement contracts. As an example of the latter, we provide new results on valuation of a supply contract with abandonment option. Based on our review, we also discuss the scope for doing further work.

Keywords: Supply chain contracts, Procurement, Spot market, Real Options

JEL Classification: C44, C61, D81, M10, M11, G13

Suggested Citation

Haksoz, Cagri and Seshadri, Sridhar, Supply Chain Operations in the Presence of a Spot Market: A Review with Discussion. Journal of Operational Research Society, Forthcoming, Available at SSRN: https://ssrn.com/abstract=696342

Cagri Haksoz (Contact Author)

Sabanci University - School of Management ( email )

Istanbul
Turkey
+90 216 483 9683 (Phone)
+90 216 483 9699 (Fax)

HOME PAGE: http://people.sabanciuniv.edu/cagrihaksoz

Sridhar Seshadri

University of Illinois at Urbana Champaign ( email )

1206 South Sixth Street
Champaign, IL 61820
United States

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