Resilience toward supply disruptions: A stochastic inventory control model with partial backordering under the base stock policy
Article
Article Title | Resilience toward supply disruptions: A stochastic inventory control model with partial backordering under the base stock policy |
---|---|
ERA Journal ID | 19837 |
Article Category | Article |
Authors | Taleizadeh, Ata Allah, Tafakkori, Keivan and Thaichon, Park |
Journal Title | Journal of Retailing and Consumer Services |
Journal Citation | 58 |
Article Number | 102291 |
Number of Pages | 19 |
Year | Jan 2021 |
Publisher | Elsevier |
Place of Publication | United Kingdom |
ISSN | 0969-6989 |
1873-1384 | |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.jretconser.2020.102291 |
Web Address (URL) | https://www.sciencedirect.com/science/article/pii/S0969698920312996 |
Abstract | This paper examines supply-side disruptions using an inventory management framework to gain insights into the economic performance of buyers who use two conventional costing strategies – end-of-cycle and continuous. The proposed model assumes that a single supplier faces full disruptions with a probability, and therefore, fails to procure all the items ordered. Accordingly, the buyer experiences unmet demand, which is assumed to be partially backordered. To make proper replenishment decisions, two base stock (S,T) periodic review optimization models are developed. The objective functions minimize the expected long-run total costs (i.e., ordering, holding, and shortage). After proving their convexity and obtaining the optimal decisions, computational experiments were carried out to investigate the impacts of the change in parameters. The results highlight the importance of selecting a suitable ratio for backorders during supply disruptions, as it leads to lower costs and reduces the inventory obsolescence and overstocking risks. Moreover, the managerial insights derived from this study aid retailers to make better replenishment decisions (in terms of level and frequency) and to be more resilient in times of disruptions. Retailers can benefit from the provided solution algorithm as a computational application. |
Keywords | Inventory; Uncertainty modeling; Partial backordering; Supply disruption; Costing scheme |
ANZSRC Field of Research 2020 | 350605. Marketing management (incl. strategy and customer relations) |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | University of Tehran, Iran |
Griffith University |
https://research.usq.edu.au/item/xx0xq/resilience-toward-supply-disruptions-a-stochastic-inventory-control-model-with-partial-backordering-under-the-base-stock-policy
24
total views0
total downloads1
views this month0
downloads this month