An Approximate Policy for a Dual-Sourcing Inventory Model with Positive Lead Times and Binomial Yield

Ju, Wanrong; Gabor, Adriana F.; Ommeren, Jan-Kees van

doi:10.2139/ssrn.2518412

Cited by 3 publications

(3 citation statements)

References 23 publications

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“…Some scholars studied the optimal dual-source procurement strategy. For example, Ju [40] considered purchasing issues with the existence of local reliable supply sources, global unreliable supply sources, lead times, and stochastic returns. Some scholars considered dual-source procurement in a certain context.…”

Section: Dual-source Procurementmentioning

confidence: 99%

Pricing and Distribution Strategies of Fresh Agricultural Product Supply Chain considering Substitutes

Zhang

Guo

2022

Mathematical Problems in Engineering

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In this article, we study the distribution, ordering, and pricing strategies when the supplier has a limited output and the retailer has substitute suppliers in a fresh agricultural product supply chain. The Stackelberg game method is adopted to study the optimal strategy of suppliers and retailers with suppliers as the leader and retailers as the follower. The results show that the wholesale price and selling price of suppliers are related to the price of substitutes and the substitution rate, the wholesale price and online selling price increase when the retailer introduces high-quality substitutes. When substitutes exist, the supplier is willing to distribute more fresh agricultural products to retailers. As the substitution rate increases, suppliers are willing to distribute more quantities. Therefore, retailers should choose more suppliers and fresh agricultural products with a higher substitution rate.

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Section: Dual-source Procurementmentioning

confidence: 99%

Pricing and Distribution Strategies of Fresh Agricultural Product Supply Chain considering Substitutes

Zhang

Guo

2022

Mathematical Problems in Engineering

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“…Satisfying customers' demand for the majority of overall profits becomes a priority, even at the expense of less-valuable customers. Ju et al [24] segmented suppliers as regular and expedited. Hsu et al [25] considered two products, classified as low index and high index.…”

Section: Introductionmentioning

confidence: 99%

Product substitution with customer segmentation under panic buying behavior

Tsao

Raj

2019

Scientia Iranica

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Under conditions of consumer panic buying, satisfying demand with the available products is a complex problem. In reality, most retailers accept alternative products during panic situations. This study considers the case of firm-driven substitution of products (differing in weight) based on retailer preferences over two time-periods. In the proposed model, panic behavior emerged in the first time-period and interruption in supply occurred in the second time-period. Under this model, retail stores were segmented into high index (valuable) and low index (less valuable) customers. Before meeting the demand of low-index customers, wholesalers attempt to satiate high-index customer's panic buying behavior. To generate maximum wholesaler's total profit, we find the optimal amount of substitution quantity, quantity to order, and leftover units. The model is investigated for both without and with substitution. To gain managerial insights, we also examined the influence of both the degree of interruption in supply and substitution costs on profits and decisions. The results can assist business managers to improve the decision-making process.

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“…Dual sourcing is a prevailing strategy for mitigating supply risk to ensure supply chain stability [3]. One approach to work with a dual supply strategy is to order products from two or multiple suppliers at the same time (Tomlin [4]; Yu, Zeng, and Zhao [5]; Ju, Gabor, and Ommeren [6]). All suppliers provide similar-quality products for enterprises, but homogeneous products may have differences in terms of price, lead time, reliability, and other attributes [7].…”

Section: Introductionmentioning

confidence: 99%

Procurement Strategy with Backup Sourcing under Stochastic Supply Risk

Zhang

Wang

2019

Complexity

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Supply risk can have a negative impact on a manufacturer’s performance. Backup sourcing is one of the most commonly used strategies to mitigate the adverse consequences of supply risks. In this paper, we study a procurement strategy with backup sourcing when a manufacturer faces stochastic supply risk and demand. The optimal decisions of the players involved are investigated theoretically using the game theoretic framework, and the impacts of the key parameters, such as wholesale prices and the risk probability, are assessed numerically under supply information symmetry and asymmetry. The results illustrate that the reservation price provided by the backup supplier varies greatly under different information-sharing conditions. Reservation quantity is negatively correlated with the reservation price, which is affected by the risk probability, wholesale prices, and marginal cost of the backup supplier. We also show that given the same wholesale prices, the potential supply risk has a substantial impact on the manufacturer’s expected profit, and the performance of the manufacturer under asymmetrical supply information is not always better than that under symmetrical information. In addition, we also discuss the impact of wholesale prices on reservation price and participants’ profits based on numerical examples. The research enriches the understanding of a procurement strategy under stochastic supply risk, and the conclusions have certain management significance.

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An Approximate Policy for a Dual-Sourcing Inventory Model with Positive Lead Times and Binomial Yield

Cited by 3 publications

References 23 publications

Pricing and Distribution Strategies of Fresh Agricultural Product Supply Chain considering Substitutes

Pricing and Distribution Strategies of Fresh Agricultural Product Supply Chain considering Substitutes

Product substitution with customer segmentation under panic buying behavior

Procurement Strategy with Backup Sourcing under Stochastic Supply Risk

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