This paper proposes a procurement and production outsourcing model subject to a dynamic prices environment. Using the optimal control theory we obtain the necessary conditions of the optimal procurement and production...This paper proposes a procurement and production outsourcing model subject to a dynamic prices environment. Using the optimal control theory we obtain the necessary conditions of the optimal procurement and production policy. From the study of optimal control conditions, we derive qualitative properties of the optimal procurement and production decisions for a few exemplifying cases. Through these results we are able to provide some managerial implications for managers to make real decisions.展开更多
基金Supported by National Natural Science Foundation of China (No. 70871044, 71171153, 71171152)Humanities and Social Sciences Research Project of Chinese Ministry of Education for Youth (No. 11YJC630011)+2 种基金China Postdoctoral Science Foundation(No.2012M511215)Humanities and Social Sciences Research Project of Hubei Province Office of Education (No. 2010q054)Science and Technology Research Project of Hubei Province Office of Education (No. B20111603)
文摘This paper proposes a procurement and production outsourcing model subject to a dynamic prices environment. Using the optimal control theory we obtain the necessary conditions of the optimal procurement and production policy. From the study of optimal control conditions, we derive qualitative properties of the optimal procurement and production decisions for a few exemplifying cases. Through these results we are able to provide some managerial implications for managers to make real decisions.
