Results

Publications

Inventory planning under supplier uncertainty in a two-level supply chain.

Abstract

Due to uncertainty in supply chains caused by the coronavirus disease 2019 (COVID-19), organizations are adjusting their supply chain design to address challenges faced during the pandemic. To safeguard their operations against disruption in order quantities, supply chain members have been looking for alternate suppliers. This paper considers a two-level supply chain consisting of a manufacturer and two suppliers of a certain type of components required for the production of a finished product. The primary supplier (supplier A) is unreliable, in the sense that the quantity delivered is usually less than the ordered quantity. The proportion of the ordered quantity delivered by supplier A is a random variable with a known probability distribution. The secondary supplier (supplier B) always delivers the order in its entirety at a higher cost and can respond instantaneously. In order for supplier B to respond instantaneously, the manufacturer is required to reserve a certain quantity at an additional cost. Once the quantity received from the main supplier is observed, the manufacturer may place an order not exceeding the reserved quantity.

Author(s)

Yassine, N.

Journal/Conference Information

The International Journal of Logistics Management, 34(2), 497-516.,