An Integrated Model for a Two-supplier Supply Chain with Uncertainty in the Supply
Author(s):
Abstract:
The objective of this paper is to study an integrated two-supplier supply chain whose suppliersare unreliable. An unreliable supplier is alternative between available (ON) and unavailable (OFF) states which are considered to be independent exponential variables. The suppliers apply a continuous review policy and the retailer uses an adapted continuous review base on a (R,Q)policy. Transportation times are constant and lead times are non-zero random variables. The retailer faces independent Poisson demands. Using the idea of the one-for-one ordering policy, we implicitly incorporate the distribution function of the random delay for obtaining the value of the expected costs of system. Finally, resorting to a dozen of sample problems, we show that the average cost reduction in our inventory system is at least 3.69% and at most 36.95 comparing to the one with only one supplier.
Keywords:
Language:
English
Published:
Journal of Industrial and Systems Engineering, Volume:5 Issue: 3, Autumn 2011
Page:
154
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