Li, Tao; Sethi, Suresh P.; Zhang, Jun - In: International Journal of Production Economics 157 (2014) C, pp. 2-6
We study a firm׳s sourcing strategy when facing two unreliable suppliers and a price-dependent isoelastic demand. At optimality, the firm always orders at least from the low-cost supplier. The firm also orders from the high-cost supplier if and only if the effective purchase cost from the...