| Article ID: | iaor20082490 |
| Country: | United Kingdom |
| Volume: | 58 |
| Issue: | 11 |
| Start Page Number: | 1412 |
| End Page Number: | 1429 |
| Publication Date: | Nov 2007 |
| Journal: | Journal of the Operational Research Society |
| Authors: | Seshadri S., Haksz . |
| Keywords: | programming: dynamic, risk |
We survey the recent literature on the use of spot market operations to manage procurement in supply chains. We present results in two categories: work that deals with optimal procurement strategies and work related to the valuation of procurement contracts. As an example of the latter, we provide new results on valuation of a supply contract with abandonment option. Based on our review, we also discuss the scope for doing further work.