Sourcing decision under disruption risk with supply and demand uncertainty: A newsvendor approach

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• 作者：Pritee Ray ; Mamata Jenamani
• 关键词：Disruption risk ; Supply uncertainty ; Multi ; sourcing ; Order allocation policy ; Newsvendor model
• 刊名：Annals of Operations Research
• 出版年：2016
• 出版时间：February 2016
• 年：2016
• 卷：237
• 期：1-2
• 页码：237-262
• 全文大小：730 KB
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• 作者单位：Pritee Ray (1)
  Mamata Jenamani (1)
  
  1. Department of Industrial & Systems Engineering, Indian Institute of Technology Kharagpur, Kharagpur, 721302 , West Bengal, India
  
• 刊物类别：Business and Economics
• 刊物主题：Economics
  Operation Research and Decision Theory
  Combinatorics
  Theory of Computation
  
• 出版者：Springer Netherlands
• ISSN：1572-9338

文摘

Multi-sourcing is considered as a common practice to hedge against supply disruption risk. In this context, this paper proposes two models for optimal order allocation in newsvendor setting, where both supply and demand are uncertain. The first model considers a risk neutral decision maker who maximizes the total expected profit under disruption risk. The second one is for a risk averse decision maker who does so under service level constraints. Analytical closed form solutions for both the models are derived. To overcome the computational complexity of the exact optimal solution, two algorithms are developed to generate optimal order quantity and the corresponding set of suppliers. The solutions with exact optimization algorithms and the proposed ones are illustrated and compared with numerical examples. The results show that the proposed algorithms give the exact optimal solution while being tractable. Finally, a case study is used to illustrate the applicability of the proposed model.