Recent years have witness the pervasive supply disruptions and their impacts on supply chain performance. We investigate single or dual sourcing emergency model with partial supply disruptions. Introducing the concept of disruption proportion and delivery allocation, we first explore partial interrupted proportion of main supplier and delivery proportion of backup supplier. Under partial disrup...

Most firms face some risk of disruption to their supply due to labor strikes, supplier bankruptcies, manufacturing quality failures, natural disasters, terrorism, or other events. In recognition of the fact that the risk of disruption may change over time, some firms have begun to continually monitor their disruption risk and to adjust their safeguards, e.g., inventory, in accordance with the c...

This article develops a model and analysis to provide insight into two effective remedies to increase supply chain resilience: (i) contracting with a secondary flexible backup supplier; and (ii) monitoring primary suppliers to obtain disruption risk information. To investigate the true value of these strategies, an analysis is performed under imperfect information concerning the disruption risk...

We study a single-product setting in which a firm can source from two suppliers, one that is unreliable and another that is reliable but more expensive. Suppliers are capacity-constrained, but the reliable supplier may possess volume flexibility. We prove that in the special case in which the reliable supplier has no flexibility and the unreliable supplier has infinite capacity, a risk-neutral ...

This paper studies three different strategies of sourcing. The whole process of this research including the problem definition is exactly based on a real case condition. This paper model sourcing process of required parts and material for a product which is manufactured under the license of Peugeot Company, the mother manufacturer in France. Based on the agreement between Peugeot and the manufa...

The risk of supply disruption increases as firms seek to procure from cheaper, but unproven, suppliers. We model a supply chain consisting of a single buyer and two suppliers, both of whom compete for the buyer’s order and face risk of supply disruption. One supplier is comparatively more reliable but also more expensive, while the other unreliable one is cheaper and faces higher risk of disrup...

This paper studies the coordination issue of a supply chain consisting of one retailer and two suppliers, amain supplier and a backup supplier. The main supplier’s yield is subject to disruption and the retailer faces a random demand. We determine the retailer’s optimal ordering policy and the main supplier’s production quantity that maximize expected profit of the centralized supply chain. We ...

We study a manufacturer that faces a supplier privileged with private information about supply disruptions. We investigate how risk-management strategies of the manufacturer change, and examine whether risk-management tools are more, or less, valuable, in the presence of such asymmetric information. We model a supply chain with one manufacturer and one supplier, in which the supplier’s reliabil...