Research on reengineering model of supply chain with two types of failures

Abstract

Describing the operation status of supply chain system by two types of failure model, this paper evaluates the long-run average cost per unit time of a supply chain system, gives a quantitative decision-making reference of supply chain reengineering. Through some numerical examples about this model, it finds that some parameters, such as aging or worn coefficient, initial traits parameters, maintenance cost coefficients，running benefit and etc, will influence the long-run average cost per unit time and reengineering policy of supply chain system. Then the authors put forward some policy suggestions for supply chain management.