Decentralized Model for a Two-Stage Supply Chain with Exogenous Demand
This paper presents a formal mathematical model for managing problems of stochastic demands; confronting many industries in the society today. We consider a two- stage supply chain where the upstream manufacturer (stage2) must always fill exogenous demands from the downstream manufacturer (stage1) using two types of expediting : Overtime production and outsourcing.
Key words: Supply chain management(SCM), Supply chain(SC), Inventory, backorder, Opti-mality.
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