Firms mitigate uncertainty in demand and supply by carrying safety stock, planning for excess capacity and diversifying supply sources. In this study, we provide a framework to jointly optimize these three levers in a periodic review infinite horizon setting, and in particular we examine how one...

We consider a multi-item buyer's make versus buy decision. The buyer sells two substitutable products with uncertain demand. Each product requires a different item, which the buyer procures from two separate suppliers (one for each item) who offer quantity-payment contracts under asymmetric...