PROCUREMENT STRATEGIES: IMPACTS OF QUALITY RISKS IN HARD WHEAT

William Wilson, Bruce L. Dahl and D. Demcey Johnson

No 36364, 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia from Western Agricultural Economics Association

Abstract: Analytical models were developed in this paper to evaluate cost/risk tradeoffs of three alternative procurement strategies in the case of hard red spring (HRS) wheat. Results indicate a naive strategy has the lowest expected cost, but a high probability of not conforming to end-use requirements. Two alternative specifications for the constant share strategy result in higher probabilities of meeting requirements, but at higher costs. The opportunistic strategy results in a higher probability of meeting requirements than either of the other two alternative strategies at a comparable cost.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Pages: 24
Date: 2000
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Citations: View citations in EconPapers (1)

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Working Paper: PROCUREMENT STRATEGIES: IMPACTS OF QUALITY RISKS IN HARD WHEAT (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:waeava:36364

DOI: 10.22004/ag.econ.36364

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