A practical expected-value-approach model to assess the relevant procurement costs

Ching-Ter Chang, Yan-Yu Chou and Zheng-Yun Zhuang
Additional contact information
Ching-Ter Chang: The Graduate Institute of Business Management, Chang Gung University, Taiwan
Yan-Yu Chou: Management College, National Kaohsiung University of Applied Sciences, Taiwan
Zheng-Yun Zhuang: School of Computer and Computing Science, City College, Zhejiang University, China

Journal of the Operational Research Society, 2015, vol. 66, issue 4, 539-553

Abstract: As an improvement to a series of expected value approach models, this study presents a supplier portfolio decision model, rather than a number of suppliers decision model. The model assesses risks as costs, considers types of heterogeneity in a procurement process and links the assessed terms in the programming model with accounting concepts. The model is then confirmed by using a procurement decision case with real data. The analysis has several implications for modelling, application and practice. In the light of the counterexamples shown, some thoughts pertaining to procurement decisions in supply management are reconsidered.

Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.palgrave-journals.com/jors/journal/v66/n4/pdf/jors201416a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jors/journal/v66/n4/full/jors201416a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jorsoc:v:66:y:2015:i:4:p:539-553

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/41274

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald and Jonathan Crook

More articles in Journal of the Operational Research Society from Palgrave Macmillan, The OR Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().