A Continuous-Review Inventory Model with Disruptions at Both Supplier and Retailer

• 成果类型: Review
• 署名作者: Qi, Lian; Shen, Zuo-Jun Max; Snyder, Lawrence V.
• 署名单位: Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick; University of California System; University of California Berkeley; Lehigh University
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/j.1937-5956.2009.01026.x
• 发表日期: 2009
• 页码: 516-532
• 关键词: Inventory model; Supply disruptions; safety stock

摘要

We consider a continuous-review inventory problem for a retailer who faces random disruptions both internally and externally (from its supplier). We formulate the expected inventory cost at this retailer and analyze the properties of the cost function. In particular, we show that the cost function is quasi-convex and therefore can be efficiently optimized to numerically find the optimal order size from the retailer to the supplier. Computational experiments provide additional insight into the problem. In addition, we introduce an effective approximation of the cost function. Our approximation can be solved in closed form, which is useful when the model is embedded into more complicated supply chain design or management models.