Coordination in a Single-Retailer Two-Supplier Supply Chain under Random Demand and Random Supply with Disruption
This paper studies the coordination issue of a supply chain consisting of one retailer and two suppliers, a main supplier and a backup supplier. The main supplier’s yield is subject to disruption and the retailer faces a random demand. We determine the retailer’s optimal ordering policy and the main...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2013-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2013/484062 |
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| _version_ | 1832548488201633792 |
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| author | Fei Hu Cheng-Chew Lim Zudi Lu Xiaochen Sun |
| author_facet | Fei Hu Cheng-Chew Lim Zudi Lu Xiaochen Sun |
| author_sort | Fei Hu |
| collection | DOAJ |
| description | This paper studies the coordination issue of a supply chain consisting of one retailer and two suppliers, a main supplier and a backup supplier. The main supplier’s yield is subject to disruption and the retailer faces a random demand. We determine the retailer’s optimal ordering policy and the main supplier’s production quantity that maximize expected profit of the centralized supply chain. We also analyze the decentralized scenario, and a combination of overproduction risk sharing and buy-back contracts with a side payment from/to the backup supplier is provided to coordinate the supply chain. Numerical examples are given to gain some qualitative insights. |
| format | Article |
| id | doaj-art-bb4656765fc940949cb0630aca47be33 |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2013-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-bb4656765fc940949cb0630aca47be332025-02-03T06:14:03ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2013-01-01201310.1155/2013/484062484062Coordination in a Single-Retailer Two-Supplier Supply Chain under Random Demand and Random Supply with DisruptionFei Hu0Cheng-Chew Lim1Zudi Lu2Xiaochen Sun3Department of Mathematics, School of Science, Tianjin University, Tianjin 300072, ChinaSchool of Electrical and Electronic Engineering, The University of Adelaide, Adelaide, SA 5005, AustraliaSchool of Mathematical Sciences, The University of Adelaide, Adelaide, SA 5005, AustraliaDepartment of Mathematics, School of Science, Tianjin University, Tianjin 300072, ChinaThis paper studies the coordination issue of a supply chain consisting of one retailer and two suppliers, a main supplier and a backup supplier. The main supplier’s yield is subject to disruption and the retailer faces a random demand. We determine the retailer’s optimal ordering policy and the main supplier’s production quantity that maximize expected profit of the centralized supply chain. We also analyze the decentralized scenario, and a combination of overproduction risk sharing and buy-back contracts with a side payment from/to the backup supplier is provided to coordinate the supply chain. Numerical examples are given to gain some qualitative insights.http://dx.doi.org/10.1155/2013/484062 |
| spellingShingle | Fei Hu Cheng-Chew Lim Zudi Lu Xiaochen Sun Coordination in a Single-Retailer Two-Supplier Supply Chain under Random Demand and Random Supply with Disruption Discrete Dynamics in Nature and Society |
| title | Coordination in a Single-Retailer Two-Supplier Supply Chain under Random Demand and Random Supply with Disruption |
| title_full | Coordination in a Single-Retailer Two-Supplier Supply Chain under Random Demand and Random Supply with Disruption |
| title_fullStr | Coordination in a Single-Retailer Two-Supplier Supply Chain under Random Demand and Random Supply with Disruption |
| title_full_unstemmed | Coordination in a Single-Retailer Two-Supplier Supply Chain under Random Demand and Random Supply with Disruption |
| title_short | Coordination in a Single-Retailer Two-Supplier Supply Chain under Random Demand and Random Supply with Disruption |
| title_sort | coordination in a single retailer two supplier supply chain under random demand and random supply with disruption |
| url | http://dx.doi.org/10.1155/2013/484062 |
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