|
AgEcon Search >
North Dakota State University >
Department of Agribusiness and Applied Economics >
Agribusiness & Applied Economics Report >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/23509
|
| Title: | PROCUREMENT STRATEGIES TO MEET FUNCTIONAL REQUIREMENTS IN WHEAT SHIPMENTS |
| Authors: | Wilson, William W.
Peterson, Del A.
Dahl, Bruce L. |
| Authors (Email): | Wilson, William W. (bwilson@ndsuext.nodak.edu)
Dahl, Bruce L. (bdahl@ndsuext.nodak.edu) |
| Keywords: | buying strategies
location
variety
functional characteristic tests
costs
risks |
| Issue Date: | 2004 |
| Series/Report no.: | Agribusiness & Applied Economics Report No. 544 |
| Abstract: | Consistency of functional characteristics in wheat is a concern confronting buyers and sellers. This research analyzes the cost and risk of different procurement strategies for importers. A stochastic simulation model is used to determine the probability of a functional characteristic being satisfied subject to quality targets. Joint probabilities of meeting specifications and costs were determined for alternative functional characteristics. Results indicate that, as more specific characteristics are incorporated into a contract, the probabilities of meeting end-use requirements increase. Specific characteristics come with a higher cost, due to increased testing costs related to identity preservation. The results are summarized as cost/risk tradeoffs confronting buyers in wheat procurement. |
| URI: | http://purl.umn.edu/23509 |
| Institution/Association: | North Dakota State University>Department of Agribusiness and Applied Economics>Agribusiness & Applied Economics Report |
| Total Pages: | 40 |
| Language: | English |
| Collections: | Agribusiness & Applied Economics Report
|
Recommend this item
All items in AgEcon Search are protected by copyright.
|
