Enhancing Supply Chain Efficiency: A Two-Stage Model for Evaluating Multiple Sourcing and Extra Procurement Strategy Optimization

Chong-Keun Kim, Chanho Lee, DongKyun Kim, Hyungjoo Cha () and Taesu Cheong ()
Additional contact information
Chong-Keun Kim: Global Technology Research, Samsung Electronics, Suwon-si 16677, Republic of Korea
Chanho Lee: School of Industrial Management Engineering, Korea University, Seoul 02841, Republic of Korea
DongKyun Kim: Department of Battery-Smart Factory, Korea University, Seoul 02841, Republic of Korea
Hyungjoo Cha: School of Industrial Management Engineering, Korea University, Seoul 02841, Republic of Korea
Taesu Cheong: School of Industrial Management Engineering, Korea University, Seoul 02841, Republic of Korea

Sustainability, 2023, vol. 15, issue 22, 1-20

Abstract: This paper presents a two-stage mathematical model aimed at enhancing supply chain efficiency by evaluating multiple sourcing strategies and optimizing extra procurement. In the first stage, the model minimizes the gap between Sales and Operation Planning (SOP) and maximum product quantity achievable with current inventory levels, setting the foundation for understanding resource requirements. The second stage focuses on extra procurement strategy optimization, considering lead times, cost-effectiveness. We analyze the trade-offs between multiple sourcing and single vendor approaches, providing valuable insights for supply chain decision-makers. This research offers a practical framework to improve supply chain efficiency, reduce gaps, and enhance customer satisfaction while strengthening supply chain resilience in the face of unforeseen challenges, as demonstrated by the lessons from the COVID-19 pandemics.

Keywords: supply chain resilience; multiple sourcing strategy; procurement strategy optimization (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/22/16122/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/22/16122/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:22:p:16122-:d:1283766

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().