I study the interaction between optimal procurement and outsourcing of production in small industries. First, two …. Then the buyer designs the procurement mechanism and sellers who outsourced production subcontract with their respective …

Reverse auctions are considered a fast and inexpensive price discovery tool to award procurement contracts and it is … often desirable to award contracts to more than one supplier. We propose a new procurement procedure that is based on a … enough, the procedure not only allows taking advantage of dual sourcing but also generates lower procurement expenditures …