This paper considers a newsvendor model for a single product to focus on the importance of coordination under demand and supply uncertainties where the raw materials are procured from two unreliable suppliers without any emergency resource; the main supplier (which is cheaper but more unreliable) is prone to random supply disruption and, therefore, it can satisfy all or nothing of the buyer’s order, while the backup supplier (which is expensive but less unreliable) is prone to random yield and, therefore, can satisfy only a random fraction of the buyer’s order. From the numerical results, we observe that it would be optimal to over-utilize the backup supplier and under-utilize the main supplier if the maximum growth in supply risk results from supply disruption. On the other hand, when the growth in supply risk occurs mainly due to increase in yield risk, the optimal risk mitigation strategy would be to increase the use of the backup supplier and decrease the use of the main supplier. We propose the price only contract and a new revenue sharing contract to mitigate demand and supply uncertainties in the decentralized model, and observe that the revenue sharing contract can fully coordinate the supply chain with win–win outcome for all entities involved in the supply chain.
Accepté le :
Première publication :
Publié le :
DOI : 10.1051/ro/2020101
Keywords: Demand uncertainty, random yield, supply disruption, dual sourcing, three-echelon supply chain, channel coordination
@article{RO_2021__55_S1_S2593_0,
author = {Giri, Bibhas C. and Majhi, Joyanta Kumar and Chaudhuri, Kripasindhu},
title = {Coordination mechanisms of a three-layer supply chain under demand and supply risk uncertainties},
journal = {RAIRO. Operations Research},
pages = {S2593--S2617},
year = {2021},
publisher = {EDP-Sciences},
volume = {55},
doi = {10.1051/ro/2020101},
mrnumber = {4223155},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2020101/}
}
TY - JOUR AU - Giri, Bibhas C. AU - Majhi, Joyanta Kumar AU - Chaudhuri, Kripasindhu TI - Coordination mechanisms of a three-layer supply chain under demand and supply risk uncertainties JO - RAIRO. Operations Research PY - 2021 SP - S2593 EP - S2617 VL - 55 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2020101/ DO - 10.1051/ro/2020101 LA - en ID - RO_2021__55_S1_S2593_0 ER -
%0 Journal Article %A Giri, Bibhas C. %A Majhi, Joyanta Kumar %A Chaudhuri, Kripasindhu %T Coordination mechanisms of a three-layer supply chain under demand and supply risk uncertainties %J RAIRO. Operations Research %D 2021 %P S2593-S2617 %V 55 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2020101/ %R 10.1051/ro/2020101 %G en %F RO_2021__55_S1_S2593_0
Giri, Bibhas C.; Majhi, Joyanta Kumar; Chaudhuri, Kripasindhu. Coordination mechanisms of a three-layer supply chain under demand and supply risk uncertainties. RAIRO. Operations Research, Tome 55 (2021), pp. S2593-S2617. doi: 10.1051/ro/2020101
[1] and , Diversification under supply uncertainty. Manage. Sci.. 39 (1993) 944–963. | Zbl | DOI
[2] and , Coordination in supply chains with uncertain demand and disruption risks: existence, analysis, and insights. IEEE Trans. Syst. Man Cybern. Syst. 44 (2014) 1139–1154. | DOI
[3] and , Single versus multiple sourcing in the presence of risks. J. Oper. Res. Soc. 57 (2006) 250–261. | Zbl | DOI
[4] , and , How many suppliers are best? A decision-analysis approach. Omega 32 (2004) 9–15. | DOI
[5] , Some results concerning optimum inventory policies. Theory Probab. App. 9 (1964) 389–403. | Zbl | DOI
[6] , Supply chain coordination with contracts. Handbooks Oper. Res. Manage. Sci. 11 (2003) 227–339.
[7] and , Contracting to assure supply: how to share demand forecasts in a supply chain. Manage. Sci. 47 (2001) 629–646. | Zbl | DOI
[8] , and , Mitigating supply disruption with a backup supplier under uncertain demand: competition vs. cooperation. Int. J. Prod. Res. (2019) 1–32.
[9] and , An analysis of a supply chain with options contracts and service requirements. IIE Trans. 44 (2012) 805–819. | DOI
[10] and , Production planning and backup sourcing strategy of a buyer-dominant supply chain with random yield and demand. Int. J. Syst. Sci. 46 (2015) 2799–2817. | MR | DOI
[11] and , Random yield and coordination mechanisms of a supply chain with emergency backup sourcing. Int. J. Prod. Res. 52 (2014) 4747–4767. | DOI
[12] , and , The importance of decoupling recurrent and disruption risks in a supply chain. Nav. Res. Logist. 54 (2007) 544–555. | MR | Zbl | DOI
[13] , and , A newsvendor’s procurement problem when suppliers are unreliable. Manuf. Serv. Oper. Manage. 9 (2007) 9–32. | DOI
[14] , , and , Configuring a supply chain to reduce the cost of demand uncertainty. Prod. Oper. Manage. 6 (1997) 211–225. | DOI
[15] , and , Coordination of supply chains with risk-averse agents. Prod. Oper. Manage. 13 (2004) 135–149. | DOI
[16] and , Revenue-sharing vs. wholesale-price contracts in assembly systems with random demand. Prod. Oper. Manage. 13 (2004) 23–33. | DOI
[17] and , Supply chain coordination for a deteriorating item with stock and price-dependent demand under revenue sharing contract. Int. Trans. Oper. Res. 19 (2012) 753–768. | MR | Zbl | DOI
[18] and , Coordinating a supply chain with backup supplier through buyback contract under supply disruption and demand uncertainty. Int. J. Syst. Sci. 1 (2014) 193–204.
[19] and , Coordinating a supply chain under uncertain demand and random yield in presence of supply disruption. Int. J. Prod. Res. 53 (2015) 5070–5084. | DOI
[20] and , On coordination under random yield and random demand. Expert Syst. App. 40 (2013) 3688–3695. | DOI
[21] and , Random yield risk sharing in a two-level supply chain. Int. J. Prod. Econ. 112 (2008) 769–781. | DOI
[22] and , Coordination in multi-echelon supply chain under supply and demand uncertainty. Int. J. Prod. Econ. 139 (2012) 106–115. | DOI
[23] , and , The comparison of two procurement strategies in the presence of supply disruption. Comput. Ind. Eng. 85 (2015) 296–305. | DOI
[24] and , Backup agreements with penalty scheme under supply disruption. Int. J. Syst. Sci. 43 (2012) 987–996. | MR | Zbl | DOI
[25] , , and , Literature review on disruption recovery in the supply chain. Int. J. Prod. Res. 55 (2017) 6158–6174. | DOI
[26] and , Integrating long-and short-term contracting via business-to-business exchanges for capital-intensive industries. Manage. Sci. 49 (2003) 1597–1615. | DOI
[27] , Optimal procurement strategies from suppliers with random yield and all-or-nothing risks. Ann. Oper. Res. 257 (2017) 167–181. | MR | DOI
[28] , , and , Capacity restoration in a decentralized assembly system with supply disruption risks. Int. Trans. Oper. Res. 24 (2017) 763–782. | MR | DOI
[29] , and , Reliability and inventory in a production-storage system. Manage. Sci. 25 (1979) 799–807. | Zbl | DOI
[30] and , Coordination in a triple sourcing supply chain using a cooperative mechanism under disruption. Comput. Ind. Eng. 101 (2016) 194–215. | DOI
[31] and , The optimal number of suppliers considering the costs of individual supplier failures. Omega 35 (2007) 104–115. | DOI
[32] , Component aftershock hits channel. Comput. Resell. News 1999 (1999) 166.
[33] , Vertical integration and antitrust policy. J. Polit. Econ. 58 (1950) 347–352. | DOI
[34] , Perspectives in supply chain risk management. Int. J. Prod. Econ. 103 (2006) 451–488. | DOI
[35] , Disruption-management strategies for short life-cycle products. Nav. Res. Logist. 56 (2009) 318–347. | MR | Zbl | DOI
[36] , , and , A new revenue sharing mechanism for coordinating multi-echelon supply chains. Oper. Res. Lett. 38 (2010) 296–301. | MR | Zbl | DOI
[37] , and , Reducing the probability of bankruptcy through supply chain coordination. IEEE Trans. Syst. Man Cybern. Part C (App. Rev.) 40 (2010) 201–215. | DOI
[38] and , Building a mutually beneficial partnership to ensure backup supply. Omega 52 (2015) 77–91. | DOI
Cité par Sources :
