Supply disruptions with time-dependent parameters

Handbook of EOQ Inventory Problems

“…Using Renewal Theory, the authors derive the expected cost function and minimize it numerically. Ross et al (2008) study the EOQD problem with durations of dry and wet intervals having phase-type distributions. The authors model this problem as a non-homogeneous continuous-time Markov chain (CTMC) and solve it numerically.…”

Bullwhip and Reverse Bullwhip Effects under the Rationing Game

“…Most literature on unreliable suppliers assumes a single retailer with one or more unreliable suppliers (see Parlar and Perry [23], Swaminathan and Shanthikumar [34], Tomlin [37], Babich et al [4], Ross et al [27], Yang et al [42], Feng [15], Wang et al [40], Tan et al [35], etc., or the reviews by Atan and Snyder [2] and Snyder et al [31]). There are relatively few papers considering supply uncertainty in distribution networks.…”

On the use of phase‐type distributions for inventory management with supply disruptions

“…Mohebbi and Hao 13, on the other hand, consider that when the supplier becomes available again if processing an order was stopped during the OFF period, the production for that order has to start from scratch. Ross et al 14 assume that the probability of disruption and demand intensity are time dependent. They model the ON and OFF periods by PTD, however, since the demand is assumed to be Poisson and the unmet demand is lost instead of being backordered, their model cannot be transformed to handle our problem.…”