Study Of Retailer’s Souring Strategy Selection Based On Supply Disruption Risk

As the mature of supply chain globalization of the world today, more and more company managers realize the importance of efficient supply chain management that can improve the competitive ability of the company. However, the development of supply chain globalization and lean production make the supply chain much weaker.In addition, the complex natural, political and economic environment gradually increased the supply chain disruption probability. In order to deal with the great negative impact, many companies begin to explore effective preventive measures and emergency response measures to control the disruption risks.On the basis of supply disruption risk analysis, this paper studies retailer’s sourcing strategy selection and quantity allocation procurement problems and proposes three ordering patterns: monophyletic procurement, dual-source procurement and emergency procurement. It is the first thing to seek the optimal ordering policy from the perspective of retailer’s profit maximization under the circumstances of stochastic market demand. Then, compare the three procurements to analyze the selection conditions. At last, we analyze the impact of some key factors on the optimal strategy, including disruption probability, penalty cost and service level by numerical simulation. Also, the paper studies multicycle emergency procurement based on the analysis of monocycle emergency procurement.The purpose of this paper is to support retailer’s sourcing strategy in theperspective of quantitative angle, which could help companies to deal with supply chain disruption risk for higher efficiency.