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In this section we numerically extend the analytical insights regarding heterogeneous unreliable Tier 2 suppliers derived in the main text to a more general case in which Tier 2 suppliers may di↵er in both procurement cost and disruption risk, which we denote cj and j , j = 1, 2. As in the main text, we assume that 1  2, but the cost parameters may be(More)
W study sourcing in a supply chain with three levels: a manufacturer, tier 1 suppliers, and tier 2 suppliers prone to disruption from, e.g., natural disasters such as earthquakes or floods. The manufacturer may not directly dictate which tier 2 suppliers are used but may influence the sourcing decisions of tier 1 suppliers via contract parameters. The(More)
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