An inventory system with two suppliers and default risk

An inventory system with two suppliers and default risk

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Article ID: iaor20102993
Volume: 37
Issue: 5
Start Page Number: 322
End Page Number: 326
Publication Date: Sep 2009
Journal: Operations Research Letters
Authors: ,
Abstract:

This paper considers the problem of joint replenishment and pricing for a single product with two suppliers and supply disruption. Our objective is to maximize the total profit by choosing an appropriate replenishment and pricing policy. We not only obtain that the form of the optimal policy has a (s,S,p,σ, Σ)-type, but also analyze how supply disruption affects the profit function and the optimal policy.

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