Abstract
Supply chain disruptions resulted from various disasters may cause awesome loss; therefore, corresponding operational policies should be designed to mitigate the negative effect. In industrial goods supply chain, customers are segmented and have different contributions and significances to manufacturers, which have to be considered when adopting mitigation policies. From the customer heterogeneity perspective, the models of a three-stage supply chain with a single supplier and two suppliers are established, and sensitivity analysis is carried out to investigate scenario parameters' impact on optimal mitigation policies. The numerical experiments find that safety stocks are suitable for low disruption probability situation. Meanwhile, strategic reserves with lower holding cost are attractive and efficient to handle a fairly highly disruptive situation or high key customer loss. The results also indicate backup supplier should be adopted if there is a low disruption probability or the backup supplier's price is not significantly higher. This paper extends the supply disruption research and leads some managerial implications and insights that might be useful for disruption mitigation in industrial goods supply chain.
| Language | English |
|---|---|
| Article number | 8676219 |
| Pages | 47329-47338 |
| Number of pages | 10 |
| Journal | IEEE Access |
| Volume | 7 |
| DOIs | |
| Publication status | Published - 2019 |
Keywords
- Supply disruption
- mitigation policies
- customer segmentation
- strategic reserves
- backup supplier
Cite this
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Policies adoption for supply disruption mitigation based on customer segmentation. / Gao, Qinglu; Xia, De; Shi, Yangyan; Quan, Ji.
In: IEEE Access, Vol. 7, 8676219, 2019, p. 47329-47338.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - Policies adoption for supply disruption mitigation based on customer segmentation
AU - Gao, Qinglu
AU - Xia, De
AU - Shi, Yangyan
AU - Quan, Ji
PY - 2019
Y1 - 2019
N2 - Supply chain disruptions resulted from various disasters may cause awesome loss; therefore, corresponding operational policies should be designed to mitigate the negative effect. In industrial goods supply chain, customers are segmented and have different contributions and significances to manufacturers, which have to be considered when adopting mitigation policies. From the customer heterogeneity perspective, the models of a three-stage supply chain with a single supplier and two suppliers are established, and sensitivity analysis is carried out to investigate scenario parameters' impact on optimal mitigation policies. The numerical experiments find that safety stocks are suitable for low disruption probability situation. Meanwhile, strategic reserves with lower holding cost are attractive and efficient to handle a fairly highly disruptive situation or high key customer loss. The results also indicate backup supplier should be adopted if there is a low disruption probability or the backup supplier's price is not significantly higher. This paper extends the supply disruption research and leads some managerial implications and insights that might be useful for disruption mitigation in industrial goods supply chain.
AB - Supply chain disruptions resulted from various disasters may cause awesome loss; therefore, corresponding operational policies should be designed to mitigate the negative effect. In industrial goods supply chain, customers are segmented and have different contributions and significances to manufacturers, which have to be considered when adopting mitigation policies. From the customer heterogeneity perspective, the models of a three-stage supply chain with a single supplier and two suppliers are established, and sensitivity analysis is carried out to investigate scenario parameters' impact on optimal mitigation policies. The numerical experiments find that safety stocks are suitable for low disruption probability situation. Meanwhile, strategic reserves with lower holding cost are attractive and efficient to handle a fairly highly disruptive situation or high key customer loss. The results also indicate backup supplier should be adopted if there is a low disruption probability or the backup supplier's price is not significantly higher. This paper extends the supply disruption research and leads some managerial implications and insights that might be useful for disruption mitigation in industrial goods supply chain.
KW - Supply disruption
KW - mitigation policies
KW - customer segmentation
KW - strategic reserves
KW - backup supplier
UR - http://www.scopus.com/inward/record.url?scp=85065157835&partnerID=8YFLogxK
U2 - 10.1109/ACCESS.2019.2905547
DO - 10.1109/ACCESS.2019.2905547
M3 - Article
VL - 7
SP - 47329
EP - 47338
JO - IEEE Access
T2 - IEEE Access
JF - IEEE Access
SN - 2169-3536
M1 - 8676219
ER -