Ordering Decision in Dual-sourcing Supply Chain with Substitute Product

DOI

10.2991/icemet-16.2016.431How to use a DOI?

Keywords

substitute product; demand uncertainty; supply uncertainty; ordering decision.

Abstract

This paper builds a model of a supply chain with substitute product, which consists of a reliable supplier, an unreliable supplier and a retailer. Then I research retailers` ordering decision when the supply and demand is uncertain at the same time. The results show that in a supply chain with substitute product, with the increase of inventory costs and demand uncertainty, retailers will increase the amount of orders from unreliable suppliers; and with the increase of the shortage penalty cost, retailers will increases the amount of orders from reliable suppliers. Finally, I verify the result by the Numerical example.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Guoyu Ni
AU  - Yong Xie
PY  - 2016/05
DA  - 2016/05
TI  - Ordering Decision in Dual-sourcing Supply Chain with Substitute Product
BT  - Proceedings of the 2016 International Conference on Economy, Management and Education Technology
PB  - Atlantis Press
SP  - 1878
EP  - 1881
SN  - 2352-5398
UR  - https://doi.org/10.2991/icemet-16.2016.431
DO  - 10.2991/icemet-16.2016.431
ID  - Ni2016/05
ER  -