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Managing procurement and production outsourcing under dynamic prices

Managing procurement and production outsourcing under dynamic prices This paper proposes a procurement and production outsourcing model subject to a dynamic prices environment. Using the optimal control theory we obtain the necessary conditions of the optimal procurement and production policy. From the study of optimal control conditions, we derive qualitative properties of the optimal procurement and production decisions for a few exemplifying cases. Through these results we are able to provide some managerial implications for managers to make real decisions. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Acta Mathematicae Applicatae Sinica Springer Journals

Managing procurement and production outsourcing under dynamic prices

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Publisher
Springer Journals
Copyright
Copyright © 2013 by Institute of Applied Mathematics, Academy of Mathematics and System Sciences, Chinese Academy of Sciences and Springer-Verlag Berlin Heidelberg
Subject
Mathematics; Applications of Mathematics; Math Applications in Computer Science; Theoretical, Mathematical and Computational Physics
ISSN
0168-9673
eISSN
1618-3932
DOI
10.1007/s10255-013-0196-4
Publisher site
See Article on Publisher Site

Abstract

This paper proposes a procurement and production outsourcing model subject to a dynamic prices environment. Using the optimal control theory we obtain the necessary conditions of the optimal procurement and production policy. From the study of optimal control conditions, we derive qualitative properties of the optimal procurement and production decisions for a few exemplifying cases. Through these results we are able to provide some managerial implications for managers to make real decisions.

Journal

Acta Mathematicae Applicatae SinicaSpringer Journals

Published: Mar 20, 2013

References