A periodic-review inventory system with a capacitated backup supplier for mitigating supply disruptions

Chen, Junlin; Zhao, Xuebing; Zhou, Yun

doi:10.1016/j.ejor.2011.12.031

Cited by 72 publications

(30 citation statements)

References 26 publications

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“…Hou, Zeng, and Zhao (2009) studied a similar problem to determine the order quantity of a make-to-order contract with the backup supplier when the primary supplier is subject to disruptions. Chen, Zhao, and Zhou (2012) also considered a periodic-review inventory system with two suppliers: an unreliable primary supplier that may be disrupted for a random duration, and a reliable backup supplier that can be used during a disruption. This study differs from aforementioned studies as it considers general reliability distributions for the primary suppliers and more than one primary supplier for a product.…”

Section: Multiple Sourcing Literaturementioning

confidence: 99%

Impact of risk aversion and backup supplier on sourcing decisions of a firm

Merzifonluoğlu

2015

International Journal of Production Research

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This study focuses on a newsvendor problem with multiple suppliers, considering the risk-neutral and risk-averse objectives in a mean-risk optimisation model. The firm first decides order quantities from the primary (unreliable) suppliers and reserve capacity from the secondary (reliable) backup supplier. After the state of its primary suppliers and customer demand is revealed, the firm purchases from the available suppliers and uses the backup supplier subject to the reserved capacity. For the special case of normal distribution and risk-neutral objective, optimality properties were developed. A comprehensive numerical study examines the sensitivity of the sourcing strategies of firms to risk, shortage cost, demand uncertainty, salvage value, and capacity reserve options; various managerial insights are offered based on this.

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Section: Multiple Sourcing Literaturementioning

confidence: 99%

Impact of risk aversion and backup supplier on sourcing decisions of a firm

Merzifonluoğlu

2015

International Journal of Production Research

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“…Tomlin (2006) examines the optimal strategy for a single product system with two suppliers: one that is unreliable and another that is reliable but expensive. Schmitt, Snyder, and Shen (2010) and Chen, Zhao, and Zhou (2012) extend the work of Tomlin (2006) to study the system with stochastic demand. Furthermore, Schmitt and Snyder (in-press) conducted a study on the comparison between single period and multiple period settings for an inventory system subject to yield uncertainty and supply disruption.…”

Section: Literature Reviewmentioning

confidence: 98%

A recovery model for a two-echelon serial supply chain with consideration of transportation disruption

Hishamuddin

Sarker

Essam

2013

Computers & Industrial Engineering

115

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“…For business continuity, it is important for a firm to know and understand the different risk properties of each of their partners in their supply chain (SC). In the literature on supply chain disruption, there exists works that explore the task of optimizing the inventory replenishment decisions in single and two-stage supply chain structures, in the aftermath of a disruption (Chen et al, 2012;Schmitt et al, 2010b;Snyder, 2008;Tomlin, 2006). These studies individually focussed on a single type of disruption.…”

Section: Introductionmentioning

confidence: 98%

A Simulation Model of a Three Echelon Supply Chain System with Multiple Suppliers subject to Supply and Transportation Disruptions

2015

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A simulation study for a three stage supply chain system with multiple suppliers subject to unexpected disruptions is presented in this paper. Two types of disruptions were considered, namely supply and transportation disruption. The objective of this study is to examine the effects of disruption on the systems' total recovery costs and other performance measures. Various disruption scenarios were predefined by combining different disruption types and locations. Overall, transportation disruption with a damaged lot has more damaging effects to the whole supply chain compared to supply disruption, due to the higher lost sales quantity. In addition, back order quantity and recovery duration have a strong positive relationship to total recovery costs. The combined benefits of simulation and optimization have enabled an increased understanding of the impacts of random disruption events on the total system behaviour.

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A periodic-review inventory system with a capacitated backup supplier for mitigating supply disruptions

Cited by 72 publications

References 26 publications

Impact of risk aversion and backup supplier on sourcing decisions of a firm

Impact of risk aversion and backup supplier on sourcing decisions of a firm

A recovery model for a two-echelon serial supply chain with consideration of transportation disruption

A Simulation Model of a Three Echelon Supply Chain System with Multiple Suppliers subject to Supply and Transportation Disruptions

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