Quality improvement and learning in productive systems
Management Science
Optimal lot sizing, process quality improvement and setup cost reduction
Operations Research
Setup reduction and increased effective capacity
Management Science
Interactive process quality improvement
Management Science
Diversification under supply uncertainty
Management Science
Toward a Theory of Continuous Improvement and the Learning Curve
Management Science
Managing Knowledge-Based Resource Capabilities Under Uncertainty
Management Science
On the Value of Mix Flexibility and Dual Sourcing in Unreliable Newsvendor Networks
Manufacturing & Service Operations Management
A Newsvendor's Procurement Problem when Suppliers Are Unreliable
Manufacturing & Service Operations Management
Competition and Diversification Effects in Supply Chains with Supplier Default Risk
Manufacturing & Service Operations Management
Pushing Quality Improvement Along Supply Chains
Management Science
Long-Term Contracts Under the Threat of Supplier Default
Manufacturing & Service Operations Management
Optimal Supply Diversification Under General Supply Risks
Operations Research
Effect of Supply Reliability in a Retail Setting with Joint Marketing and Inventory Decisions
Manufacturing & Service Operations Management
Supplier diversification: effect of discrete demand
Operations Research Letters
Supplier Diversification Strategies in the Presence of Yield Uncertainty and Buyer Competition
Manufacturing & Service Operations Management
Supply-Side Story: Risks, Guarantees, Competition, and Information Asymmetry
Management Science
Managing Disruption Risk: The Interplay Between Operations and Insurance
Management Science
Lot Sizing and Dynamic Pricing with Random Yield and Different Qualities
International Journal of Advanced Pervasive and Ubiquitous Computing
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Surveys suggest that supply chain risk is a growing issue for executives and that supplier reliability is of particular concern. A common mitigation strategy is for the buying firm to expend effort improving the reliability of its supply base. We explore a model in which a firm can source from multiple suppliers and/or exert effort to improve supplier reliability. For both random capacity and random yield types of supply uncertainty, we propose a model of process improvement in which improvement efforts (if successful) increase supplier reliability in the sense that the delivered quantity (for any given order quantity) is stochastically larger after improvement. We characterize the optimal procurement quantities and improvement efforts and generate managerial insights. For random capacity, improvement is increasingly favored over dual sourcing as the supplier cost heterogeneity increases, but dual sourcing is favored over improvement if the supplier reliability heterogeneity is high. In the random yield model, increasing cost heterogeneity can reduce the attractiveness of improvement, and improvement can be favored over dual sourcing if the reliability heterogeneity is high. A combined strategy (improvement and dual sourcing) can provide significant value if suppliers are very unreliable and/or capacity is low relative to demand.