Contingent or stable dual sourcing? The preferences of manufacturers and suppliers under supply disruption and competition

2021 ◽  
pp. 1-41
Author(s):  
Jingyan Li ◽  
Yunbing Li ◽  
Bingjing Li ◽  
Xiang Ji
Keyword(s):  
Supply Disruption ◽  
Dual Sourcing

scholarly journals Contract Coordination in Dual Sourcing Supply Chain under Supply Disruption Risk

2015 ◽  
Vol 2015 ◽  
pp. 1-10 ◽  
Author(s):  
Tong Shu ◽  
Fang Yang ◽  
Shou Chen ◽  
Shouyang Wang ◽  
Kin Keung Lai ◽  
...  
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
Order Quantity ◽  
Product Price ◽  
Strike Price ◽  
Supply Disruption ◽  
Dual Sourcing ◽  
Coordination Model ◽  
Disruption Risk

This paper explores a coordination model for a three-echelon supply chain including two different manufacturers, one distributer and one retailer via the combined option and back contracts. And one manufacturer provides the high wholesale price with low supply disruption risk and the other is completely the opposite. This differs from the previous supply chain coordination model. Firstly, supply disruption is added to the three-echelon supply chain. Secondly, considering the coordination of the supply chain, we deploy the combined option and back contracts which are seldom used in the previous study. Furthermore, it is interesting that supply disruption risk and buyback factor do not affect the distributor’s order quantity from the manufacturer who has low product price and unreliable operating ability, while the order quantity increases with the rise of option premium and option strike price. The distributor’s order quantity from the manufacturer, which has high product price and reliable operating ability, increases with the rise of supply disruption risk but decreases when the buyback factor, option premium, and option strike price decrease.

Dual Sourcing Under Random Supply Capacities: The Role of the Slow Supplier

2016 ◽  
Vol 25 (7) ◽  
pp. 1232-1244 ◽  
Author(s):  
Burcu Tan ◽  
Qi Feng ◽  
Wen Chen
Keyword(s):  
Dual Sourcing

scholarly journals Improving effectiveness of spare parts supply by additive manufacturing as dual sourcing option

OR Spectrum ◽  
2020 ◽  
Author(s):  
N. Knofius ◽  
M. C. van der Heijden ◽  
A. Sleptchenko ◽  
W. H. M. Zijm
Keyword(s):  
Additive Manufacturing ◽  
Spare Parts ◽  
Aviation Industry ◽  
Failure Behavior ◽  
Dual Sourcing ◽  
Production Methods ◽  
Holding Costs ◽  
Unit Costs ◽  
Single Sourcing ◽  
Low Volume

Abstract The low-volume spare parts business is often identified as a potential beneficiary of additive manufacturing (AM) technologies. Currently, high AM unit costs or low AM part reliabilities deem the application of AM economical inferior to conventional manufacturing (CM) methods in most cases. In this paper, we investigate the potential to overcome these deficiencies by combining AM and CM methods. For that purpose, we develop an approach that is tailored toward the unique characteristics of dual sourcing with two production methods. Opposed to the traditional dual sourcing literature, we consider the different failure behavior of parts produced by AM and CM methods. Using numerical experiments and a case study in the aviation industry, we explore under which conditions dual sourcing with AM performs best. Single sourcing with AM methods typically leads to higher purchasing and maintenance costs while single sourcing with CM methods increases backorder and holding costs. Savings of more than 30% compared to the best single sourcing option are possible even if the reliability or unit costs of a part sourced with AM are three times worse than for a CM part. In conclusion, dual sourcing methods may play an important role to exploit the benefits of AM methods while avoiding its drawbacks in the low-volume spare parts business.

scholarly journals Retailer’s Emergency Ordering Policy when Facing an Impending Supply Disruption

2021 ◽  
Vol 13 (13) ◽  
pp. 7041
Author(s):  
Jingfu Huang ◽  
Gaoke Wu ◽  
Yiju Wang
Keyword(s):  
Optimization Model ◽  
Numerical Experiments ◽  
Closed Form Solution ◽  
Form Solution ◽  
Model Solution ◽  
Inventory Cost ◽  
Supply Disruption ◽  
Procurement Policy ◽  
Ordering Policy ◽  
Procurement Strategies

Supply disruption is a common phenomenon in business activities. For the case where the supply disruption is predictable, the retailer should make an emergency procurement beforehand to decrease the inventory cost. For the scenario such that the happening time of the supply disruption obeys a certain common probability distribution but the ending time of the supply disruption is deterministic, based on minimizing the inventory cost and under two possible procurement strategies, we establish an emergency procurement optimization model. By considering the model solution in all cases, we establish a closed-form solution to the optimization model and provide an optimal emergency procurement policy to the retailer. Some numerical experiments are made to test the validity of the model and the effect of the involved parameters on the emergency procurement policy.

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