Research On Purchasing Decisions Considering Supplier Reputation Loss Under Supply Disruption Risk

In an increasingly extensive and complex supply network,supply disruptions occur frequently,causing suppliers to fail to deliver products in time,which not only brings huge economic losses to the enterprise,but also affects the brand image and reputation of the enterprise.In the face of supply disruption risks,previous studies have focused on the coping strategies of downstream manufacturers,such as: dual-source procurement,backup procurement,demand management,etc.,lacking the control of the internal connection of the supply chain network and the risk source coping mechanism.A good reputation provides guarantees for maintaining existing cooperation among enterprises,attracting enterprises to cooperate again,and creating value for all stakeholders of supply chain enterprises.In this context,the reputation loss caused by suppliers under supply disruption is included in the research,to explore how manufacturers choose procurement models and determine purchase quantities,and how suppliers make optimal investment decisions for interrupted production capacity,so as to achieve the dual purpose of reducing reputation loss and mitigating the risk of disruption.In response to the above issues,on the basis of considering the two factors of the supplier’s reputation loss and production guarantee investment,and aiming at the scenarios where the manufacturer applies the two procurement modes of dual-source procurement and backup procurement respectively,A Stackelberg game model is constructed,which focuses on the decision-making of manufacturer’s order purchase and supplier’s disruption of capacity investment.According to the different purchasing quantities of manufacturer,the profits of manufacturer under the two procurement modes are compared,and the better procurement mode is selected.The research shows that:(1)When suppliers invest in production guarantee to reduce reputation loss,there is a certain acceptance range for the manufacturer’s purchase order,and when the market size is at an appropriate level,the supplier’s production guarantee investment strategy is a win-win choice.(2)The impact of the risk of supply disruption on the manufacturer’s income is closely related to the supplier’s investment in disrupted production capacity;(1)When the risk of disruption is low,manufacturers are more inclined to procure at equal amounts for meeting market demand,and both procurement modes are acceptable;(2)When the risk of disruption is high,manufacturers are more inclined to over-purchase,increasing the possibility of meeting market demand through excess reserves,and are more inclined to adopt backup procurement mode.(3)The purchasing decision of the manufacturer is not only affected by the disruption risk,but also affected by the sensitivity of the unreliable supplier to the reputation loss and production guarantee investment cost in the dual-source procurement mode.In the backup procurement mode,the purchasing decision of the manufacturer is also affected by the unit penalty in the backup contract.