Title :
Response to the supply chain disruptions with multiple sourcing
Author :
Xiaoqiang, Zhou ; Huijiang, Fang
Author_Institution :
Modern Econ. Manage. Coll., Jiangxi Univ. of Finance & Econ., Nanchang, China
Abstract :
The supply disruption has more influences on the enterprise performance than the demand disruption, while closer cooperation with suppliers is extremely important to mitigate supply disruption risk and improve performance. After the global supply chain emergencies arising frequently, all companies should ensure that supply disruption management becomes an intrinsic part of decision-making, to deal with the suppliers not fulfilling orders. Considered a two-echelon supply chain including one purchaser and two equal suppliers, in which the suppliers occurred common and unique supply disruption, this paper researched which measures the purchaser should take to maximize his expectation income. It concludes that the ordering quantity in multiple sourcing strategy is more than in single sourcing strategy, so multiple sourcing have function as safety storage; and for some special demand distribution function, such as uniformity distribution, multiple sourcing gains more expectation income than single sourcing.
Keywords :
decision making; decision theory; decision trees; optimisation; order processing; procurement; purchasing; risk management; stochastic processes; decision tree analysis; demand distribution function; expectation income maximization; global supply chain emergency; multiple sourcing strategy; order quantity allocation; procurement decision-making; purchasing; stochastic demand; supply chain disruption management; supply disruption risk mitigation; two-echelon supply chain; Costs; Decision making; Disaster management; Economic forecasting; Environmental economics; Logistics; Raw materials; Risk management; Supply chain management; Supply chains; Supply Chain Disruptions; decision-making; multiple sourcing; procurement decision;
Conference_Titel :
Automation and Logistics, 2009. ICAL '09. IEEE International Conference on
Conference_Location :
Shenyang
Print_ISBN :
978-1-4244-4794-7
Electronic_ISBN :
978-1-4244-4795-4
DOI :
10.1109/ICAL.2009.5262956