Managing supply disruption in a two-echelon distribution network
2018 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2018, Florida, Amerika Birleşik Devletleri, 19 - 22 Mayıs 2018, ss.1931-1936, (Tam Metin Bildiri)
- Yayın Türü: Bildiri / Tam Metin Bildiri
- Basıldığı Şehir: Florida
- Basıldığı Ülke: Amerika Birleşik Devletleri
- Sayfa Sayıları: ss.1931-1936
- Anahtar Kelimeler: Multi-echelon, Stock rationing, Supply chain, Supply uncertainty
- Boğaziçi Üniversitesi Adresli: Evet
Özet
We consider a two-echelon supply network with a supplier, a manufacturer, and two retailers. The supplier is subject to non-stationary supply disruptions. Effects of international incidents on energy supply, severe weather events, supplier's default, quality problems are common causes of disruptions in supply. In this study, the length of a supply unavailability duration is modeled as a non-stationary geometric type random variable, reflecting time-dependent nature of supply availability. In every period the manufacturer places an order with the supplier by taking into account any possible supply disruptions in the planning horizon, and subsequently makes an allocation of available stock to downstream retailers. The aim is to find the optimal ordering policy for the manufacturer, and the optimal allocation amounts to the retailers that will minimize expected system-wide costs over a finite planning horizon. We present a dynamic programming model for this problem, and give structural properties of the optimal ordering policy under a simplified allocation rule. Structural results that we obtain lead to an easy computational procedure for the optimal system-wide inventory policy. We also discuss the effectiveness of the allocation rule and present various managerial insight through a numerical study.