IDEAS home Printed from https://ideas.repec.org/a/ids/eujine/v13y2019i2p178-212.html
   My bibliography  Save this article

Effect of supply disruption on inventory policy

Author

Listed:
  • Chirakiat Saithong
  • Huynh Trung Luong

Abstract

This research examines a two-stage supply chain that comprises a supplier who is subject to stochastic disruption and a retailer who has to deal with supply disruption by holding inventory. Under a periodic-review base-stock inventory policy, the main objectives of this study are to determine the optimal inventory policy in the presence of stochastic supply disruption so as to minimise the total inventory cost as well as to analyse the impact of supply disruption on the optimal inventory policy. In this research, the length of a supply disruption is modelled as a continuous random variable, distinguishing it from previous research which modelled the length of a supply disruption as a discrete random variable that receives values only as multiples of the length of a review period. Numerical experiments have been conducted to illustrate the applicability of the proposed inventory model and to examine the effects of various input parameters on the optimal inventory policy. Furthermore, compared with the optimal inventory policy derived when the length of a supply disruption is considered as a multiple of the length of a review period, the proposed inventory model in this research can help derive a more precise optimal inventory policy. [Received: 13 February 2017; Revised: 7 December 2017; Accepted: 17 October 2018]

Suggested Citation

  • Chirakiat Saithong & Huynh Trung Luong, 2019. "Effect of supply disruption on inventory policy," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 13(2), pages 178-212.
    • Handle: RePEc:ids:eujine:v:13:y:2019:i:2:p:178-212
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=98511
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Manik Debnath & Sanat Kr. Mazumder & Md Billal Hossain & Arindam Garai & Csaba Balint Illes, 2023. "Optimal Base-Stock Inventory-Management Policies of Cement Retailers under Supply-Side Disruptions," Mathematics, MDPI, vol. 11(18), pages 1-34, September.
    2. Zhiping Lin & Jing Peng & Jia Wang, 2023. "The cash flows in push and pull supply chains under supply disruptions," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1191-1202, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:eujine:v:13:y:2019:i:2:p:178-212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=210 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.