NDLI: Supply Disruption and Reactive Strategies in an Assemble-to-Order Supply Chain With Time-Sensitive Demand

Content Provider	IEEE Xplore Digital Library
Author	Xiao-Feng Shao Ming Dong
Copyright Year	1988
Abstract	This paper addresses the comparison and selection decision of reactive strategies for supply disruption management. We consider an assemble-to-order supply chain with one manufacturer who employs a single-sourcing strategy for each kind of component. The manufacturer assembles products for customers using components purchased from the suppliers in a just-in-time environment. Demand for the products is time-sensitive. We propose and compare three pure reactive strategies and two dynamic reactive policies for managing supply disruption. In the pure reactive strategies, only one kind of strategy is adopted during the disruption. But strategies adopted in the dynamic pure reactive policies change with the passage of time during the disruption. In the dynamic mixed strategy with customer choices, the manufacturer can use both backup source to offer on-time delivery and compensation policy to compensate customers for waiting in each period during the disruption. We find that the backup sourcing strategy is preferred at the beginning of the supply disruption, while the compensation strategy is preferred as time elapses. The dynamic pure strategy is superior to any other pure reactive strategies. The dynamic mixed strategy with customer choices is superior to the pure backup sourcing strategy. The backup cost and customer sensitivity are two determining factors in the manufacturer's choice of the reactive strategies.
Sponsorship	IEEE Technology Management Council
Starting Page	201
Ending Page	212
Page Count	12
File Size	776420
File Format	PDF
ISSN	00189391
Volume Number	59
Issue Number	2
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2012-05-01
Publisher Place	U.S.A.
Access Restriction	One Nation One Subscription (ONOS)
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Supply chains Companies Aggregates Mobile handsets Planning Redundancy supply disruption Assemble-to-order reactive strategy
Content Type	Text
Resource Type	Article
Subject	Strategy and Management Electrical and Electronic Engineering

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