Supplies from developing countries: Optimal order quantities under loss risks

Sounderpandian, Jayavel; Prasad, Sameer; Madan, Manu S.

doi:10.1016/j.omega.2005.10.009

Cited by 38 publications

(11 citation statements)

References 34 publications

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“…In view of this, a number of papers have been devoted to risk analysis of supply chain models. Recent studies include, but are not limited to, those by Lau [13], Bouakiz and Sobel [5], Choi et al [9], Eeckhoudt et al [10], Lau and Lau [14], Agrawal and Seshadri [1,2], Chen and Federgruen [7], Buzacott et al [6], Chen et al [8], Wang and Webster [18], Wu et al [19], Bogataj and Bogataj [4], He and Zhang [11], Sounderpandian, Prasad and Madan [16], and Agrawal and Ganeshan [3]. For an extensive review of the literature on supply chain risk management or extension of different objectives on newsvendor problem, the reader is referred to Khouja [12], Tang [17] and Wu et al [20].…”

Section: Introductionmentioning

confidence: 99%

Mean–variance analysis of the newsvendor model with stockout cost☆

Wang

et al. 2009

Omega

156

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We apply the mean-variance approach to analyze the risk-averse newsvendor problem with stockout cost. We first derive an explicit form and some new properties of the variance of the profit function. Then, under the assumption that demand follows the power distribution, and its special case the uniform distribution, we obtain the set of optimal ordering quantities. We also give a counterexample to one result presented in the literature. Contrary to the traditional result in the literature that the risk-averse newsvendor always orders less than the risk-neutral newsvendor, our findings show that this may not be the case when stockout cost is considered because the newsvendor may order more than the risk-neutral newsvendor order quantity under a stockout situation with mean-variance tradeoff.

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Section: Introductionmentioning

confidence: 99%

Mean–variance analysis of the newsvendor model with stockout cost☆

Wang

et al. 2009

Omega

156

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“…Furthermore, sourcing from low-cost countries might be related to material losses in transit which can be due to theft, quality problems or product decay (Sounderpandian et al, 2008). Also Platts and Song (2010) show for several case studies in the context of sourcing from China that the total costs are often underestimated in practice and thus, alternative sourcing strategies might be more reasonable.…”

Section: Sourcing Decisionsmentioning

confidence: 99%

The Economic and Environmental Sustainability of Dual Sourcing

Rosic¹

2012

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“…In the developing countries, this is a pertinent issue that has been inadequately addressed and as such adversely impacts on alleviation of poverty, employment creation, wealth generation, gender parity, rural development and overall productivity of the leather sector (McKague & Oliver, 2012). The problem has further been compounded in the developing countries with observed high losses along the production chain, lack of appropriate strategic interventions and implementation modalities which would have ensured tangible productivity in terms of value addition in the leather strata (Sounderpandian, Prasad and Madan, 2008). Thusly, the need to conceptualize the underpinning factors is paramount to provide tangible interventions or optimize on identified unexplored opportunities within the leather stratums in boosting productivity through value addition initiatives in Kenya (Sharma et al, 2010).…”

Section: Introductionmentioning

confidence: 99%

Evaluation of Productivity Responses from the Leather Value Chain Strata in Kenya

Mwinyihija

2014

BMS

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Productivity is fundamental in addressing key economic indicators such employment, wealth creation, trade, competiveness and rural development in Africa. The inattentive attitude towards the importance of productivity in most African countries has culminated to problems that entail lack of sustainable productivity framework in their commodity development. In retrospect, as a panacea the value addition initiatives being set up in the continent should as a prerequisite take cognizance of productivity to its livestock agro-based production chain. This background, therefore, prompted the significance of this study to focus in identifying and examining the survey responses from the leather strata in Kenya related to productivity. In addition, the study evaluated the significance of the interrelationship between various stratums that interphase in the value creation process of the leather sector influence activities related to productivity. During the prognosis, a quantitative approach (n=244), descriptive analysis including an aggregate score to ascertain the top activities impacting on productivity in Kenya was carried out. The results indicated that whilst producers were mainly concerned with transport related costs, skilled man power attributed a major constraint amongst the slaughterhouse, traders, tanners and footwear. However, tanners involved with the processing of the hides and skins, identified enhancement of Total factor of productivity (TFP) as fundamental to their productivity. This was a significant result as it illustrated appropriate focus on management of costs and enhancing productivity to spar generation of tangible value-addition initiatives and transform the leather strata to be competitive. Thusly, the overall results indicated that productivity related activities were significant (p<0.05) to the value chain stratum. Therefore, this observation strengthened the aspect of considering

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Supplies from developing countries: Optimal order quantities under loss risks

Cited by 38 publications

References 34 publications

Mean–variance analysis of the newsvendor model with stockout cost☆

Mean–variance analysis of the newsvendor model with stockout cost☆

The Economic and Environmental Sustainability of Dual Sourcing

Evaluation of Productivity Responses from the Leather Value Chain Strata in Kenya

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