A new stochastic demand model for dual-sourcing supply chain considering disruption risk

Ashkan Mohsenzadeh, Mohammad Ali Sobhanallahi and Alireza Arshadi Khamseh

International Journal of Services and Operations Management, 2017, vol. 27, issue 1, 70-82

Abstract: In this paper, we propose a single period-product model with two supply channels when disruption is feasible in wholesaler-retailer channels considering back-orders and lost sales. Here we define a maximisation model regarding disruptions in dual channels and sensitivity analysis on the parameters has been done based on it. We test our proposed model by several numerical examples and finally used contour curves to show disruption effects on order quantity and ordering channel selection.

Keywords: two echelon supply chains; disruption risk; back-orders; lost sales; inventory control; stochastic demand; supply chain risks; suppply chain management; SCM; order quantity; ordering channel selection; supply chain disruption. (search for similar items in EconPapers)
Date: 2017
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