The risk and information sharing of application services supply chain

@article{Demirkan2008TheRA,
  title={The risk and information sharing of application services supply chain},
  author={Haluk Demirkan and Hsing Kenneth Cheng},
  journal={European Journal of Operational Research},
  year={2008},
  volume={187},
  pages={765-784}
}
We study an application services supply chain consisting of one Application Service Provider (ASP) and one Application Infrastructure Provider (AIP). The AIP supplies the computer capacity to the ASP that in turns sells the value-added application services to the market. The market is characterized by a price-sensitive random demand. The ASP’s objective is to determine the optimal price of its service to the market and the optimal capacity to purchase from the AIP. The AIP’s goal on the other… CONTINUE READING
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