Goel, Ankur; Gutierrez, Genaro J. - In: Management Science 57 (2011) 12, pp. 2228-2244
We consider a firm that procures and distributes a commodity from spot and forward markets under randomly fluctuating prices; the commodity is distributed downstream to a set of nonhomogeneous retailers to satisfy random demand. We formulate a model that allows one to compute approximate, but...