Impact of sourcing flexibility on the outsourcing of services under demand uncertainty

This paper investigates the relationship between market conditions and the value and use of sourcing flexibility for service processes. We develop and analyze a series of models, and we derive expressions for the optimal switching decision, the value of the option to outsource, the value of the option to backsource, and the probability and timing of switches between the alternative sources.

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Year of publication:	2012
Authors:	Benaroch, Michel ; Webster, Scott ; Kazaz, Burak
Published in:	European Journal of Operational Research. - Elsevier, ISSN 0377-2217. - Vol. 219.2012, 2, p. 272-283
Publisher:	Elsevier
Subject:	Services outsourcing \| Backsourcing \| Demand uncertainty \| Real options

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010574211