Procurement Strategies to Improve Quality Consistency in Wheat Shipments

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 functional characteristics being satisfied subject to quality targets and costs for alternative purchase strategies. Stochastic efficiency was employed to identify purchase strategies that dominate others and to determine the extent of preference. As more specific characteristics are incorporated into a contract, results indicate that the probabilities of meeting end-use requirements increase


Issue Date:
2008-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/36708
Published in:
Journal of Agricultural and Resource Economics, Volume 33, Number 1
Page range:
69-86
Total Pages:
17




 Record created 2017-04-01, last modified 2017-08-25

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