Xu, Su Xiu; Lu, Qiang; Huang, George Q.; Zhang, Ting - In: International Journal of Production Economics 145 (2013) 1, pp. 339-348
This paper presents a make-or-buy (M–B) model in which a firm (say Firm 1) may produce in-house, or outsource a product to the unique vendor, the monopolist in the outsourcing market. Demand for the finished product is stochastic and price-sensitive, and Firm 1's information forecast about the...