Dual sourcing strategies using information on disruption discovery and recovery

Thomas Welsh Archibald; Nurakmal Ahmad Mustaffa

Abstract

This paper investigates how the information about supply disruption that is available to manufacturers affects the optimal sourcing strategy. A Markov decision process model of a single manufacturer with two suppliers is analysed under different assumptions about the information available on the occurrence of disruption and the length of recovery. The model also considers the impact of disruption to one supplier on the performance of the other supplier, an issue that is often overlooked in the literature. A comparison of the optimal policies under the various scenarios provides insight on the management of the disruptions to the supply chain.

Original language	English
Publication status	Published - 2015
Event	27th European Conference on Operational Research (EURO 2015) - Glasgow, United Kingdom Duration: 12 Jul 2015 → 15 Jul 2015

Conference

Conference	27th European Conference on Operational Research (EURO 2015)
Country/Territory	United Kingdom
City	Glasgow
Period	12/07/15 → 15/07/15

Keywords

Supply chain management
Dynamic programming
Stochastic models

Cite this

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title = "Dual sourcing strategies using information on disruption discovery and recovery",

abstract = "This paper investigates how the information about supply disruption that is available to manufacturers affects the optimal sourcing strategy. A Markov decision process model of a single manufacturer with two suppliers is analysed under different assumptions about the information available on the occurrence of disruption and the length of recovery. The model also considers the impact of disruption to one supplier on the performance of the other supplier, an issue that is often overlooked in the literature. A comparison of the optimal policies under the various scenarios provides insight on the management of the disruptions to the supply chain.",

keywords = "Supply chain management, Dynamic programming, Stochastic models",

author = "Archibald, {Thomas Welsh} and {Ahmad Mustaffa}, Nurakmal",

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note = "27th European Conference on Operational Research (EURO 2015) ; Conference date: 12-07-2015 Through 15-07-2015",

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AU - Archibald, Thomas Welsh

AU - Ahmad Mustaffa, Nurakmal

PY - 2015

Y1 - 2015

N2 - This paper investigates how the information about supply disruption that is available to manufacturers affects the optimal sourcing strategy. A Markov decision process model of a single manufacturer with two suppliers is analysed under different assumptions about the information available on the occurrence of disruption and the length of recovery. The model also considers the impact of disruption to one supplier on the performance of the other supplier, an issue that is often overlooked in the literature. A comparison of the optimal policies under the various scenarios provides insight on the management of the disruptions to the supply chain.

AB - This paper investigates how the information about supply disruption that is available to manufacturers affects the optimal sourcing strategy. A Markov decision process model of a single manufacturer with two suppliers is analysed under different assumptions about the information available on the occurrence of disruption and the length of recovery. The model also considers the impact of disruption to one supplier on the performance of the other supplier, an issue that is often overlooked in the literature. A comparison of the optimal policies under the various scenarios provides insight on the management of the disruptions to the supply chain.

KW - Supply chain management

KW - Dynamic programming

KW - Stochastic models

M3 - Abstract

T2 - 27th European Conference on Operational Research (EURO 2015)

Y2 - 12 July 2015 through 15 July 2015

ER -

Dual sourcing strategies using information on disruption discovery and recovery

Abstract

Conference

Keywords

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Cite this