Inventory Model with Supply Disruption Risk and Service Level Constraint

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  • 1. Department of Basic, Nanyang Vocational College of Agriculture2. School of Mathematics and Statistics, Henan University of Science and Technology
WANG Quan-qing(1963-), male, native of Nanyang, Henan, engages in applied mathematics.

Received date: 2013-06-10

  Online published: 2020-11-30

Supported by

Supported by the NNSF of China(10971053);

Abstract

We develop a newsvender model with service level constraint for oneproduct and multi-supplier system, where the supplies are susceptible to disruption risks. We prove the convexity of the programming problem,and provide the necessary and sufficient conditions for the optimal order quantities. Through analysis or numerical experiments we observe the effects of the disrupt risk and the service level constraint on the optimal policy. We propose some managerial insights in managing the multi-source supply chain with disruption risks. 

Cite this article

WANG Quan-qing, LI Zhen-guo, LI Xiao-shen . Inventory Model with Supply Disruption Risk and Service Level Constraint[J]. Chinese Quarterly Journal of Mathematics, 2014 , 29(3) : 412 -418 . DOI: 10.13371/j.cnki.chin.q.j.m.2014.03.011

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