Paper Info
Title
A periodic-review inventory system with a capacitated backup supplier for mitigating supply disruptions.
Abstract
We consider a periodic-review inventory system with two suppliers: an unreliable regular supplier that may be disrupted for a random duration, and a reliable backup supplier that can be used during a disruption. The backup supplier charges higher unit purchasing cost and fixed order cost when compared to the regular supplier. Because the backup supplier is used at unplanned moments, its capacity to replenish inventory is considered limited. Analytical results partially characterize the structure of the optimal order policy: a state-dependent (X(i), Y(i)) band structure (with corresponding bounds of X(i) and Y(i) to be given), where i represents the status of the regular supplier. Numerical studies illustrate the structure of the optimal policy and investigate the impacts of major parameters on optimal order decisions and system costs. © 2012 Elsevier B.V. All rights reserved.
Year
DOI
Venue
2012
10.1016/j.ejor.2011.12.031
European Journal of Operational Research
Keywords
Field
DocType
Inventory,Supply risk,Disruption,(X,Y) band,Capacity
Mathematical optimization,Purchasing,Inventory system,Periodic graph (geometry),Operations management,Mathematics,Backup
Journal
Volume
Issue
ISSN
219
2
0377-2217
Citations 
PageRank 
References 
16
0.86
15
Authors
3
Name
Order
Citations
PageRank
Junlin Chen1586.32
Xiaobo Zhao211716.07
Yun Zhou3527.80