Random yield and coordination mechanisms of a supply chain with emergency backup sourcing

Chen, Kebing; Yang, Lei

doi:10.1080/00207543.2014.886790

Cited by 58 publications

(29 citation statements)

References 60 publications

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“…Tang and Kouvelis (2011) studied the benefits of supplier diversification for dual-procurement duopolists. Existing literature also investigates the benefits of emergency/contingency sourcing (Tomlin 2006(Tomlin , 2009Chopra, Reinhardt, and Mohan 2007;Kouvelis and Li 2012;Chen and Yang 2014;Gupta, He, and Sethi 2015). Kouvelis and Li (2012) examined the potential use of two contingency strategies on top of a conventional time buffer -statically planned safety lead-time approach to address lead-time uncertainty.…”

Section: Literature Reviewmentioning

confidence: 99%

Managing supply disruption through procurement strategy and price competition

Huang

Yuan

2015

International Journal of Production Research

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When facing supply disruptions, the emergency procurement strategy and the optimal allocation procurement strategy are widely used strategies to manage supply risks. In this paper, buyers use these types of procurement strategies under the threat of supply disruption and engage in price competition. The structural properties of the procurement strategies are characterised by their reliability thresholds. We find that reliability thresholds play a critical role in buyer procurement strategy choices, which are related to the sales price, underage cost and differentials in unit procurement cost. A solution procedure is proposed to determine the equilibrium strategy profile. The effects of reliability levels and costs on the equilibrium prices, expected profits and equilibrium strategy profiles are explored. We extend the basic model to investigate the case of symmetric competition where buyers can freely choose their procurement strategy. The results show that in most cases, the competing buyers will choose the same strategy, whether an optimal allocation strategy with single sourcing or an emergency procurement strategy with dual sourcing. In a special parameter setting, the buyers will choose either strategy because they yield identical expected profits; this leads to multiple equilibria. We also find the equilibrium to be Pareto efficient.

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Section: Literature Reviewmentioning

confidence: 99%

Managing supply disruption through procurement strategy and price competition

Huang

Yuan

2015

International Journal of Production Research

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“…In recent years, scholars and practitioners have devoted study to the emergency management issues of supply chain [1][2][3][4][5][6][7][8][9]. Fereiduni and Shahanaghi [1] presented a multiperiod model for the blood supply chain in an emergency situation to optimize decisions related to locating blood facilities and distributing blood products after natural disasters.…”

Section: Literature Reviewmentioning

confidence: 99%

Fuzzy Emergency Model and Robust Emergency Strategy of Supply Chain System under Random Supply Disruptions

Zhang

2019

Complexity

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For random distributors under supply disruptions caused by emergency incidents, a fuzzy emergency model and a robust emergency strategy of the supply chain system are studied. First, for a kind of supply chain system composed of a strategic manufacturer, a backup manufacturer, and multiple distributors, the basic emergency models, including the inventory models and a total cost model, are constructed under random supply disruptions. Then, based on the Takagi-Sugeno fuzzy system, the basic emergency models of the supply chain system are converted into a discrete switching model, which can realize soft switching among the basic emergency models. Furthermore, according to the different inventory levels, the strategic manufacturer’s production strategies and the distributors’ ordering strategies are designed to reduce the inventory costs of the node enterprises in supply chain system. Second, by defining a discrete piecewise Lyapunov function in each maximal overlapped-rules group, a new fuzzy robust emergency strategy for the supply chain system is proposed through the principle of parallel distributed compensation. This emergency strategy can not only restore the impaired supply chain to the normal operation state but also keep the total cost of the supply chain at a low level and guarantee the robust stability of the emergency supply chain system. Finally, the simulation results illustrate the effectiveness of the proposed fuzzy robust emergency strategy of the supply chain system.

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“…In addition, in our paper, we assume that the supply disruption affects the overall yield of the supplier who can deliver partial order quantity under disruption, and not modeled as accepting or rejecting a batch such as Taleizadeh (). Specifically, we use the random yield modeling approach (Yano and Lee, ; Dada et al., ; Cho and Tang, ; Chen and Yang, ) in our study, that is, in this model, the quantity received by a buyer is a random fraction of the quantity ordered from the disrupted supplier. Thus, a zero‐percent yield in our model becomes a special case of rejecting a batch.…”

Section: Introductionmentioning

confidence: 99%

Supply chain financing with advance selling under disruption

Gupta

Chutani

2019

Int Trans Operational Res

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We study a financing problem in a supply chain (SC) consisting of one supplier and one buyer under supply disruption. The supplier could face a disruption at its end which could effectively reduce its yield in case of disruption, thereby resulting in supply yield uncertainty. The retailer can finance the supplier using advance selling that can help mitigate the impact of disruption. We model this problem as a Stackelberg game, where the supplier as the leader announces the wholesale price and the retailer responds by deciding its optimal order quantity given stochastic demand and an exogenous fixed retail price. The supplier then commences production and a disruption can happen with a known probability. We assume that under disruption the quantity delivered is a fraction of the initial quantity ordered by the retailer. The retailer loses any unmet demand. We analyze three different scenarios of the Stackelberg game, namely no advance selling with disruption, advance selling without disruption, and advance selling with disruption. Our results indicate that advance selling can be used to mitigate the impact of supply disruption and at the same time could lead to an increase in the overall SC profit.

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Random yield and coordination mechanisms of a supply chain with emergency backup sourcing

Cited by 58 publications

References 60 publications

Managing supply disruption through procurement strategy and price competition

Managing supply disruption through procurement strategy and price competition

Fuzzy Emergency Model and Robust Emergency Strategy of Supply Chain System under Random Supply Disruptions

Supply chain financing with advance selling under disruption

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