Dong, Lingxiu; Tomlin, Brian - In: Management Science 58 (2012) 10, pp. 1898-1915
operational measures. We model a manufacturing firm that can purchase BI insurance, invest in inventory, and avail of emergency … optimal insurance deductible and coverage limit as well as the optimal inventory level. We prove that insurance and …, insurance can increase the marginal value of inventory and can increase the overall value of emergency sourcing. We also find …