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A new stochastic demand model for dual-sourcing supply chain considering disruption risk

Author

Listed:
  • Ashkan Mohsenzadeh
  • Mohammad Ali Sobhanallahi
  • Alireza Arshadi Khamseh

Abstract

In this paper, we propose a single period-product model with two supply channels when disruption is feasible in wholesaler-retailer channels considering back-orders and lost sales. Here we define a maximisation model regarding disruptions in dual channels and sensitivity analysis on the parameters has been done based on it. We test our proposed model by several numerical examples and finally used contour curves to show disruption effects on order quantity and ordering channel selection.

Suggested Citation

  • Ashkan Mohsenzadeh & Mohammad Ali Sobhanallahi & Alireza Arshadi Khamseh, 2017. "A new stochastic demand model for dual-sourcing supply chain considering disruption risk," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 27(1), pages 70-82.
    • Handle: RePEc:ids:ijsoma:v:27:y:2017:i:1:p:70-82
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