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A tight approximation for an EOQ model with supply disruptions

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  • Snyder, Lawrence V.

Abstract

We consider a continuous-review inventory model for a firm that faces deterministic demand but whose supplier experiences random supply disruptions. The supplier experiences “wet” and “dry” (operational and disrupted) periods whose durations are exponentially distributed. The firm follows an EOQ-like policy during wet periods but may not place orders during dry periods; any demands occurring during dry periods are lost if the firm does not have sufficient inventory to meet them.

Suggested Citation

  • Snyder, Lawrence V., 2014. "A tight approximation for an EOQ model with supply disruptions," International Journal of Production Economics, Elsevier, vol. 155(C), pages 91-108.
    • Handle: RePEc:eee:proeco:v:155:y:2014:i:c:p:91-108
    DOI: 10.1016/j.ijpe.2014.01.025
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    Cited by:

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    4. Mohammed Alnahhal & Batin Latif Aylak & Muataz Al Hazza & Ahmad Sakhrieh, 2024. "Economic Order Quantity: A State-of-the-Art in the Era of Uncertain Supply Chains," Sustainability, MDPI, vol. 16(14), pages 1-19, July.
    5. Sevgen, Arya & Sargut, F. Zeynep, 2019. "May reorder point help under disruptions?," International Journal of Production Economics, Elsevier, vol. 209(C), pages 61-69.
    6. Sanjoy Kumar Paul & Ruhul Sarker & Daryl Essam, 2018. "A reactive mitigation approach for managing supply disruption in a three-tier supply chain," Journal of Intelligent Manufacturing, Springer, vol. 29(7), pages 1581-1597, October.
    7. Bakal, İsmail Serdar & Bayındır, Z. Pelin & Emer, Deniz Esin, 2017. "Value of disruption information in an EOQ environment," European Journal of Operational Research, Elsevier, vol. 263(2), pages 446-460.
    8. Luangkesorn, K.L. & Klein, G. & Bidanda, B., 2016. "Analysis of production systems with potential for severe disruptions," International Journal of Production Economics, Elsevier, vol. 171(P4), pages 478-486.
    9. Konstantaras, I. & Skouri, K. & Lagodimos, A.G., 2019. "EOQ with independent endogenous supply disruptions," Omega, Elsevier, vol. 83(C), pages 96-106.

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