Article ID: | iaor20072725 |
Country: | United States |
Volume: | 53 |
Issue: | 1 |
Start Page Number: | 101 |
End Page Number: | 114 |
Publication Date: | Feb 2006 |
Journal: | Naval Research Logistics |
Authors: | zekici Sleyman, Erdem Asl Sencer, Fadlolu Mehmet Murat |
Keywords: | supply & supply chains |
We consider an EOQ model with multiple suppliers that have random capacities, which leads to uncertain yield in orders, A given order is fully received from a supplier if the order quantity is less than the supplier's capacity; otherwise, the quantity received is equal to the available capacity. The optimal order quantities for the suppliers can be obtained as the unique solution of an implicit set of equations in which the expected unsatisified order is the same for each supplier. Further characterizations and properties are obtained for the uniform and exponential capacity cases with discussions on the issues related to diversification among suppliers.