In progress Mitigating Risks in Supply Chains
- ERIM PhD 2012 ESE RD_AG
With companies increasing rely on outsourcing, supply risks are of great importance for companies who try to minimize their ordering and inventory control costs. Supply risks exist in dierent forms. In my PhD project I will study three important types of supply risks and explore their eects on both the inventory control policies and the expected inventory costs. The first type of supply risk I study is random yield. Random yield refers to the situation in which a random portion of the orders placed with a supplier turns out to be usable at the buyer companies. The second type of supply risk I study is random lead time. In the second project described in detail below, I will study an inventory system with two supply channels one of which provides accelerated delivery with certain probability. We first analyze the inventory model and try to nd the optimal inventory control policy for the buyer company for given lead times and probability of acceleration. Then we analyze the contracting issue between the buyer and the supplier and study the trade-o between lead time and purchasing cost. Last but not the least, I study an inventory system with two partially substitutable parts the old version of which is out of production and has high obsolescence risk. We try to nd the optimal stopping time for repairing the older version part to minimize the expected total inventory cost.