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2020 ; 202
(ä): 107037
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Optimal Product Substitution and Dual Sourcing Strategy considering Reliability
of Production Lines
#MMPMID34170996
Wu D
; Gong M
; Peng R
; Yan X
; Wu S
Reliab Eng Syst Saf
2020[Oct]; 202
(ä): 107037
PMID34170996
show ga
Most of the supply chain literature assumes that product substitution is an
effective method to mitigate supply chain disruptions and that all production
lines either survive or are disrupted together. Such assumptions, however, may
not hold in the real world: (1) when there is a shortfall of all products,
product substitution may be inadequate unless it is paired with other strategies
such as dual sourcing; and (2) production lines do not survive forever and may
fail. To relax such assumptions, this paper therefore investigates the situations
that the manufacturer may optimize substitution policy and dual sourcing policy
to cope with supply chain disruptions. The paper obtains and compares the optimal
policies for both deterministic and stochastic demands. A real-world case is also
studied to verify the effectiveness of the proposed model.