Research on Joint Strategy of Inventory for Production Disruption

Under the consideration of stochastic demand and affected probability of a single enterprise within the alliance after the production disruptions, this paper based on the idea of joint inventory management, puts forward an improved inventory model, the joint emergency strategy inventory model, which is in order to decrease the inventory cost after the production disruptions. This paper builds an inventory costs function to deal with the risk of production disruptions of an independent enterprise and an inventory cost function of individual enterprise within the alliance. And from the analysis of the two cost functions, this paper concludes that the joint emergency strategy inventory model has bigger advantages in inventory costs. Finally, through specific examples, this paper analyzes the both expected costs of the independent enterprise and the individual enterprise within the alliance under the probability of different supply chain emergencies, and further validates the advantages of the joint emergency strategy inventory model.