Decentralized Model for a Two-Stage Supply Chain with Exogenous Demand

C.R Nwozo, D Akoh

Abstract


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.


Keywords


Supply chain management(SCM), Supply chain(SC), Inventory, backorder, Opti-mality.

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DOI: http://dx.doi.org/10.3968/j.pam.1925252820110302.1600

DOI (PDF): http://dx.doi.org/10.3968/g2245

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